‘Next move in the rupee is towards 80, not 90’: Ruchir Sharma at Express Adda

“…Rupee is 84 today. I am going to bet that the next move in the rupee is towards 80, not 90,” he said at the Express Adda, organised by the Indian Express on August 27.

He was in conversation with Anant Goenka, Executive Director, The Indian Express Group, and K V Kamath, Chairman, National Bank for Financing Infrastructure and Development (NaBFID) and Chairman Jio Financial Services.

Sharma, who is the Chairman of Rockefeller International and Founder and Chief Investment Officer of Breakout Capital, said a strong dollar tends to help the US, and a weak dollar leads to higher capital flows to emerging markets.

“I fundamentally believe that emerging markets are going to benefit from a weak dollar over the next five to 10 years,” he said, adding that if the US dollar weakens then India will see more capital inflows which will help in keeping interest rates lower than the current level.

He noted after the US imposed sanctions on Russia in 2022, central banks around the world started buying gold, which resulted in the decline in the share of the US dollar in their foreign exchange reserves. These central banks have also started buying smaller currencies like the Swiss Franc and Australian dollar.