Real Effective Exchange Rate of Rupee spikes in November
The Reserve Bank of India (RBI) in its report highlighted that the Real Effective Exchange Rate (REER) of the Indian Rupee increased to 108.14 in November 2024 from 107.20 in October 2024.
The Reserve Bank of India (RBI) in its report highlighted that the Real Effective Exchange Rate (REER) of the Indian Rupee increased to 108.14 in November 2024 from 107.20 in October 2024.
The Indian rupee has breached the significant psychological barrier of 85 against the US dollar, marking an all-time low amid a confluence of domestic and global pressures.
The Indian rupee’s stability, despite external pressures from weak Asian currencies and rising US bond yields, highlights a nuanced approach by the Reserve Bank of India (RBI) in managing the currency.
The Indian rupee’s recent behaviour, hovering just shy of 84 a dollar, has been a focal point of discussion in financial circles. On Tuesday, the currency closed at 83.97, marginally above its previous alltime low of 83.9725, thanks to the Reserve Bank of India's (RBI) timely intervention.
BSESENSEX lost 1,449.08 points or 1.92 per cent to close at 73,961.31 points, while NIFTY lost 426.40 points or 1.86 per cent to close at 22,530.70 points.
The government has allowed international trade settlements in Indian rupees for export promotion schemes under the foreign trade policy.
Citing the uncertainty in the global macro environment, the Indian rupee is likely to be under pressure, especially if crude prices remain elevated and global growth slows down.
The dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.06 per cent, up at 92.18.
From a technical perspective, the rupee is holding below its resistance level of Rs 72.50 to a dollar as well as trend resistance.
The value of the country's gold reserves decreased, declining by $580 million to $37.440 billion.
