The Indian rupee fell by 9 paise to close at a fresh record low of 85.20 against the US dollar on Tuesday, weighed down by persistent dollar demand from importers and global economic uncertainties. This marks a new low for the domestic currency, which has been under pressure due to a combination of domestic and international factors.
Source:- bbc news
The rupee opened weak at 85.15 and traded in a narrow range before settling at its lowest-ever closing level. The greenback’s strength, supported by robust US economic data and a hawkish stance by the Federal Reserve, continues to put downward pressure on emerging market currencies, including the rupee.
Source:- news 18
Domestically, a widening trade deficit and sustained outflows from foreign institutional investors have added to the rupee’s woes. High crude oil prices, hovering near $90 per barrel, are also contributing to the pressure by increasing India’s import bill.
Market analysts believe the rupee’s depreciation reflects global risk aversion amid geopolitical tensions and fears of a global economic slowdown. The Reserve Bank of India (RBI) is closely monitoring the situation, but any direct intervention in the forex market is likely to be calibrated to avoid depleting foreign exchange reserves.
Experts suggest that the rupee’s trajectory will depend on future actions by the Federal Reserve, crude oil price movements, and India’s inflation data. While the weaker rupee could boost export competitiveness, it poses challenges for import-heavy sectors, potentially leading to higher costs for goods and services.
Investors are advised to stay cautious as volatility in the forex market is expected to continue in the near term. The rupee is likely to remain under pressure unless there is a significant easing in global economic conditions.
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