Under Pressure
As the Indian rupee reached a record low of 87.58 to the dollar on Thursday, it finds itself at a critical juncture, navigating a sea of global and domestic pressures.
As the Indian rupee reached a record low of 87.58 to the dollar on Thursday, it finds itself at a critical juncture, navigating a sea of global and domestic pressures.
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.
The domestic currency was at 72.97 to a US dollar, from its Monday's close of 73.12.
In addition, the domestic currency traded lower by 59 paise at 73.03 to a US dollar, from its Friday close of 72.44.
Forex traders said increased demand for the US currency from importers and concerns around the rift between the government and the RBI weighed on the local unit.
At the interbank foreign exchange, the rupee opened weak at 73.74 then slipped further to quote 23 paise down at 73.79 against the US dollar.
Unabated capital outflows by foreign funds, and heavy selling in domestic equities dampened the sentiment, dealers said.
