Indian economy decoupling should lead to stronger rupee in medium term

Indian large, small and midcap indices are the amongst best-performing Equities in the world in the last four months, led by our resilient macro environment. As the Fed has once again raised interest rates by 25 bps, RBI has maintained its pause showing the underlying strength in the Indian economy. India today consumes almost 50% of its oil imports from Russia at cheaper prices leading to swelling forex reserves. All this is building up a case for a stronger currency in the medium-term horizon.