Why is the Indian rupee weakening against the dollar?

The rupee is weakening due to global uncertainties, foreign outflows from Indian equities, and delays in a US trade deal.

What is the Reserve Bank of India's stance on the rupee's fall?

The RBI has intervened minimally and may be tolerating some weakness to support corporate hedging needs.

How much money have foreign investors pulled from Indian shares?

Foreign investors have withdrawn $2.7 billion from Indian equities this month, adding to last year's outflows.

Home / Business and Economy / Rupee Plummets: Global Woes Hit Indian Currency

Rupee Plummets: Global Woes Hit Indian Currency

22 Jan

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Summary

Indian rupee dropped to a record low against the dollar.
Foreign investors withdrew $2.7 billion from Indian equities this month.
RBI may tolerate rupee weakness for corporate hedging needs.

Rupee Plummets: Global Woes Hit Indian Currency

The Indian rupee has reached a new all-time low, experiencing a significant weakening against the US dollar. On Wednesday, the currency depreciated by up to 0.8%, surpassing its previous record low set in December and lagging behind all other Asian currencies.

This decline is attributed to a combination of global uncertainties stemming from geopolitical events and specific domestic issues, including delays in a US trade deal and substantial capital outflows. Foreign investors have withdrawn approximately $2.7 billion from Indian equities this month, adding to the considerable outflows seen last year.

Emerging Asian currencies have largely weakened against the dollar this year due to global uncertainties, with the rupee and the South Korean won both depreciating by 2%. The Indonesian rupiah and Philippine peso have also hit recent lows.