At the end of the year, the build-up of supply pressures arising from reduced demand from importers contributed to an acceleration in the appreciation of the rupee against major currencies. The strong rupee was definitely benefiting the consumer in our import-dependent economy but export-oriented enterprises and the tourism sector began to feel the pinch and murmurs of impending massive layoffs became louder.
We also observed that the volume of transactions in the foreign exchange market was on the low side compared to the same period in the previous year as forex sellers began to hoard their currency.