Rupee's Downward Spiral: Global and Domestic Factors at Play
Rupee weakens against dollar amidst global trade tensions, strong dollar, and foreign investor outflows.
Rupee Under Pressure: Trade Wars and Dollar Dominate
The Indian rupee continues its downward spiral, hitting a record low of ₹87.57 against the US dollar amid rising global trade tensions and economic uncertainties. The currency has weakened due to stronger dollar demand, geopolitical risks, and persistent foreign investor outflows. Recent tariff decisions by the US government, particularly those affecting China, Canada, and Mexico, have intensified concerns, causing volatility in emerging markets like India.
Multiple factors are influencing the rupee's depreciation, including rising oil prices, a widening trade deficit, and concerns over India’s inflation levels. The Reserve Bank of India (RBI) may step in to stabilize the forex market, but experts warn of continued fluctuations in the coming months. Investors are advised to monitor interest rate policies, global economic trends, and foreign investment flows to gauge the rupee's future trajectory.
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