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.
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.
The rupee had settled at 69.65 against the US dollar Monday.
However, gains in domestic equities supported the rupee and capped its losses to some extent, they added.
Forex traders said investors welcomed the RBI policy decision as this would help to boost the slowing economy.
