Rupee falls to all-time low against US dollar
Notably, the rupee dropped to 85.0650 against the US dollar in early trade, compared to 84.9525 on Wednesday.
Notably, the rupee dropped to 85.0650 against the US dollar in early trade, compared to 84.9525 on Wednesday.
The Indian rupee’s surge to a two-month high on Thursday signals a broader shift in the global economic landscape, influenced not just by domestic factors but by international dynamics as well.
The minister said that a stable economy will propel India to become one of the top 3 economies in the world.
It is not just Western sanctions on Russia that accelerated the trend to circumvent the dollar, but the strength of the currency in the past year has also posed a challenge.
With the Reserve Bank of India's Inter-Departmental Group having expressed the view that the rupee possesses the potential of evolving into a global currency in the wake of India's resilient economic growth amid global challenges, the potential of such a development is significant for India's economic growth and international standing.
China has threatened to take retaliatory measures if US President Donald Trump raises tariffs on USD 200 billion worth of goods ahead of the crucial 11th round of talks aimed at ending the trade war between the world's two largest economies.
Foreign fund outflows restricted the rupee upmove.
Forex traders said the weakening of the greenback in overseas markets coupled with sustained foreign fund inflows aided the local unit.
The local unit, however, pared some gains and was quoted at 69.54 against the American currency at 0951 hrs.
The benchmark BSE Sensex was trading with gains of 150.56 points, or 0.39 per cent, at 38,864.41; while the NSE Nifty was trading at 11,692.05, up 50.25 points, or 0.43 per cent. Meanwhile, brent crude, the global benchmark, was trading at 74.14 per barrel lower by 0.28 per cent.
