The Indian Rupee has yet another all-time low, yet again. The national/official currency of India has been on the decline for the past few trading sessions.
Indian Rupee Slumps To Historic Low
The Indian currency’s value (traded) slumped to 85.94 against the US dollar. The Indian Rupee is inching closer to the 86 mark.
The lowest recorded price meanwhile stands at around Rs 86.23.
The Indian currency has lost a mammoth 2.88 per cent of its value in just the past 6 months.
The Rise Of Dollar
This also comes at a time, when the US dollar has gone from strength to strength, especially since Donald Trump’s victory in the November 2024 election. The US dollar is the world’s reserve currency.
And just in recent weeks, certain statements from the president-elect on his future course of actions, including a tariff threat on BRICS countries over the possibility of an alternative currency have only made the US dollar a more attractive currency.
Indian Markets Fall
This also comes at a time, when the Indian equity markets have also been experiencing a period of decline over the past few weeks and months.
The BSE Sensex has declined by over 4.61 per cent or 3,757.96 points, in just the past month of trade. The NSE Nifty on the other hand had dropped in value by 4.37 per cent or a staggering 1,074.80 points in the same period.
A weaker currency is useful if the nation or the economy depends heavily on exports, as it puts manufacturers and exporters in an advantageous position, making exports more competitive.
Rupee Against Others
On the other hand, a dip in the value of the currency often diminishes the purchasing power of the consumers in the economy, thereby slowing down consumption, and further pulling any prospects of growth down.
In addition to the US Dollar, the Indian Rupee stood at 105.51 against a single British Pound Sterling. The Indian Rupee also slumped against the UAE Dirham, one Dirham is equivalent to 23.38 Indian Rupees. The Rupee stood at 88.48 against a single unit of Euro. And to Saudi Riyal also rose in value against the Indian Rupee, jumping to 22.88.
