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 rupee is expected to trade in a narrow range as market participants will keep a close watch on the Union budget this week, that could trigger volatility in the local unit.
The domestic currency, however, could not hold on to the gains and fell to 69.09. The rupee finally settled at 68.94 a dollar, higher by 9 paise over its previous close.
Subdued sentiments in domestic equity markets also influenced the trading pattern in the currency market, forex traders said. However, a weak dollar against major currencies overseas restricted the rupee's fall, they added.
Forex dealers said the selling of the American currency by exporters and gain in other Asian currencies also supported the rupee.
The Indian rupee Wednesday had closed at 69.34 against the US dollar.
