Rupee fall spooks India Inc boardrooms; CFOs worry RBI may hike rates again

To stem the fall in the currency's value, the central banks across the world are raising interest rates, triggered by rising US interest rates and a rising dollar

The chief financial officers (CFOs) of India Inc are worried that the continuous fall in the value of the rupee against the dollar might stoke inflation, which in turn, might prompt the Reserve Bank of India (RBI) to increase interest rates. This would make the cost of funds expensive for corporate entities.

“In the past, the RBI had raised interest rates to check volatility. The sudden fall in the rupee’s value is alarming and the RBI will not hesitate to raise rates so as to stop the fall in value,” said Prabal Banerjee, president of the Bajaj group.

“The cost