us dollar outlook: ETMarkets Investors’ Guide: Strength in dollar index may not carry on in remainder of 2022: Radhika Rao, DBS Bank | The Economic Times Podcast

Welcome to ETMarkets’ Investors Guide, a show about asset classes, market trends, and investment opportunities. This is Saloni Goel.

Many developed economies are struggling with decadal high inflation that has started reflecting on weak consumer demand. Central banks seem to be left with no option but to tighten monetary policies further, which is fuelling growth concerns, sending financial markets into a tailspin.

There are fears of a recession in the US, more so as the US Fed now believes it is a challenging task for it to secure a ‘soft landing’. Investors are unsure how much growth policymakers are willing to sacrifice to bring inflation under control. The process could be painful.

ETMarkets caught up with Radhika Rao, senior economist with DBS Bank to understand these global developments closely. Rao talked about weakness in the rupee, foreign outflows and also commodity prices, which have started easing a bit amid global demand worries.

Listen in!

Hello Radhika, welcome.

Q. With the rupee falling to new lows with each passing day, where do you see it headed by year-end?

Q. With the US economy sending mixed signals, do you see a possibility of a soft rather than a hard landing? How will it impact financial markets?

Q. What is the terminal rate that you see for the Fed rate? Do you think the US rate hikes may not be aggressive — after say July, but steady?

Q. Commodity prices have seen some softness, be it metals or crude due to growth slowdown concerns. Do you think such weakness is temporary, as just last week China announced the easing of Covid curbs and there is no end to crude supply concerns?

Q. Where do you see the dollar index moving? Do you think persistent foreign equity outflows from India will continue in the remainder of this calendar?

Thank you for these insights.

That’s all in this week’s special podcast. Do keep checking this space for more interesting content and take time out to follow our market podcasts every day. Stay safe and Happy Weekend!

(Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of Economic Times)

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