An interest rate hike is expected sooner or later by the Reserve Bank of India, said Jamal Mecklai, CEO of Mecklai Financial Services.
Rupee fell for six days in row with the currency hitting as low as 71.93 on Wednesday.
“We can assume that there will be an interest rate hike sooner or later,” said Mecklai.
“The thing that is intriguing to me is that it’s not that foreign institutional investors (FII) flows have stopped in August; they were modestly positive. So what is pushing the rupee lower is sentiment,” he added.
It’s hard to see where the inflows could come from because right now globally also there is a lot of uncertainty, he further mentioned.