The rate on the USD INR is giving investors heart ache as the rupee slid to yet another record low vs the dollar. Bets are now rising for the rupee to slide all the way to Rs 80/$. But it is not the rupee weakness but the dollar dominance that is in the spotlight which now has the Euro nearing parity with dollar and the pound hitting two-year low.
Also read/watch| Rupee at record low: Flexi Capital explains what to expect next
So what does this mean for your portfolio, Editorji spoke with Nasser Salim, Managing Partner at Flexi Capital who sees more near term pain as the greenback is expected to gain further.
These are very peculiar times as far as the capital markets, the fixed income markets, the currency markets are concerned. We personally feel that there is some more, trouble as expected because, you know, it's all linked basically to interest rates which are globally moving higher.
However, we are also of the opinion that this is in the near term inching towards its peak. We think in the US interest rates are going to start peaking over the next 3-6 months. And therefore the dollar will not appreciate more beyond maybe, or plus-minus 1 -1.5% from here on.