The Indian rupee has reached a new record low, trading at 22.784 against the UAE dirham and 83.6188 against the US dollar. This decline surpasses its previous low of 22.732 against the Emirati dirham.
Earlier today, the rupee opened at 22.732 at the interbank foreign exchange market, but continued to weaken, falling to 22.746 against the dirham, marking a decline of 4 paise from its previous close.
The depreciation of the rupee is primarily attributed to the strengthening of the US dollar and rising crude oil prices in the international markets. Despite a steady inflow of foreign capital, the rupee succumbed to downward pressure due to a lackluster performance in the domestic equity markets, according to forex traders.
The persistent upward trend in crude oil prices has increased import costs, adding further strain on the Indian currency. Additionally, the robust performance of the American currency has compounded the rupee’s woes.
Forex traders noted that while foreign capital inflows have helped the rupee resist a sharper decline, the muted trend in domestic equity markets has not provided the necessary support to counteract the external pressures.
As the rupee continues to struggle, market watchers are closely monitoring global economic trends and their potential impacts on the currency. The Reserve Bank of India (RBI) may also take measures to stabilize the rupee if the situation persists.
