What factors are causing the Rupee's depreciation?

The Rupee's depreciation is driven by geopolitical uncertainty, selling pressure from foreign funds, risk-off sentiment, and rising crude oil prices.

Does the Indian Rupee's value reflect the country's economic health?

According to the economic survey, the Rupee's current value does not accurately reflect India's strong economic fundamentals and favorable growth outlook.

Home / Business and Economy / Rupee Hits All-Time Low Amid Global Turmoil

Rupee Hits All-Time Low Amid Global Turmoil

Q: What is the current status of the Indian Rupee against the US Dollar?

The Indian Rupee settled near its all-time closing low of 91.96 against the US dollar, having touched an intra-day low of 92.

29 Jan

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Summary

Rupee settled near its all-time closing low at 91.96.
Geopolitical uncertainty drove the rupee to an intra-day low of 92.
Economic Survey notes rupee does not reflect India's strong fundamentals.

Rupee Hits All-Time Low Amid Global Turmoil

The Indian rupee has reached unprecedented levels, settling near its all-time closing low of 91.96 against the US dollar. Forex traders reported an intra-day low of 92, driven by significant selling pressure from foreign funds and a prevailing risk-off sentiment in global markets. Geopolitical uncertainty and increased outflows exacerbated the situation.

Adding to the concerns, the economic survey tabled by Finance Minister Nirmala Sitharaman flagged external sector risks and continued foreign outflows. The survey critically noted that the rupee's current value of 92 per dollar does not accurately represent India's strong economic fundamentals, suggesting it is 'punching below its weight'.

Analysts attribute the stress on emerging market currencies, including the rupee, to persistent dollar strength, elevated US bond yields, and ongoing portfolio outflows. Month-end importer demand and precautionary hedging have further intensified the downward pressure. Despite the volatility, India's medium-term economic outlook remains resilient, supported by stable growth and manageable inflation.