In a recent interview, Arvind Panagariya, Professor of Economics and the Jagadish Bhagwati Professor of Indian Political Economy at Columbia University and the former vice-chairman of Niti Aayog stated that the Reserve Bank of India should allow the Indian Rupee to depreciate against the US Dollar as the domestic currency remains overvalued compared to its peers across the board.
Though the statement in its individual capacity did not cause any furor in the market, it could give us some insight about the possible trajectory of currency markets in India. Geopolitical frictions across the globe have been putting a lot of pressure on the emerging currencies as most of the market participants and investors are preferring to place their bet on the safe haven assets rather than exposing themselves to riskier assets at this point in time.
Further to add fuel to the fire, in recently concluded Jackson Hole Economic Policy Symposium 2022, the U.S. Federal Reserve Chair Jerome Powell emphasized on the burning inflation level of 8.5% as opposed to the target level of 2%. Throughout his speech, he concentrated on bringing back inflation to the target level and all possibilities of rate hikes till the desired result is achieved. He acknowledged the fact that the future rate hikes will bring pain to the households and business enterprises. Further, such hikes will put a lot of pressure on the bond yields and could cause a lot of bleeding to a bond portfolio.
Though these statements and patterns do not depict a clear picture of the road ahead for currencies and bond markets, one thing is pretty much evident that the markets are going to witness a great amount of volatility and Treasuries and Treasurers are going to come under a lot of pressure to safeguard their investments and to stitch proper hedging strategies.
In such chaotic conditions corporate Treasurers often are kept longing for essential tools and ammunition to fight and weather the storm and steer the ship in most efficient ways. Now, you don’t have to look beyond our state-of-the-art Treasury Management Solution which CxOs and Treasurers use to enhance visibility, improve control, mitigate operational risk, drive automation, and optimize business efficiency.
IBSFINtech’s InTReaXTM complete suite of Treasury Management Solutions empower corporations to manage currency exposure, commodity exposure, Money Market and Investments, Trade Finance Operations, Liquidity & Cash Management and Hedge Accounting which is powered by Refinitive Data & Analytics.
Share on facebook
Share on twitter
Share on linkedin
Share on whatsapp

Thanks for applying!

Your application has been received.
Meanwhile, take a tour of exciting & challenging Life at IBSFINtech
Follow us

Thank you for reaching out!

Your enquiry is well received. Meanwhile, take a look at the latest updates on IBSFINtech – The leading Enterprise Treasury, Risk & Trade Finance Management® (TRTFM®) solution provider.
Follow us
Ready To Get Started ?​
Enter your details to download the brochure
Request a demo
Please fill in your details and we will get in touch with you shortly.

I consent to receiving communications from IBSFINtech India Pvt Ltd regarding our product offerings. You may withdraw your consent by contacting Please refer to our Privacy Policy

Thank you for reaching out!

Your enquiry is well received. Meanwhile, take a look at our customer’s digital transformation journey and IBSFINtech’s role in contributing to their success & growth.
Follow us