Budget 2022: Rupee Sees A Decline; Bond Yields Surge On Fiscal Deficit Numbers

Rupee in trade today has moved lower and last at 1:48 pm was down at 74.71 per US dollar. This is after the equities have also shed immense gains post the budget announcements.

The budget has been all inclusive, covering all grounds, futuristic, clear and transparent.

Budget 2022: Rupee Sees A Decline; Bond Yields Surge On Fiscal Deficit Numbers

Nevetheless, investors seem to be cautious as the Finance Minister on Tuesday said that the fiscal deficit in 2022 will be 6.9 per cent of GDP and 6.4 per cent in 2022-23, forex traders said.

Bond yields on the other hand surged and last was at 6.874% after the finance ministry said that fiscal deficit shall be bigger. Finance Minister Nirmala Sitharaman said fiscal deficit for the current financial year was expected to be 6.9% and announced a 35.4% raise in capital expenditure to 7.5 trillion rupees ($100.62 billion) in 2022-23.

Also, higher crude prices as well as the US dollar continues to weigh.

GoodReturns.in