Rupee Surge
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 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.
According to RBI's latest data, India's foreign currency assets, the biggest component of the forex reserves, fell by USD 4.38 billion to USD 509.691 billion.
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.
Traders said the selling of the US currency by exporters and foreign fund inflows were the other factors that provided support to the home unit.
The Department of Treasury maintained the same monitoring list but said if India continues with the same practices as in the last six months, it would be removed from its next bi-annual report.
