Indian Rupee Hits All-Time Low of ₹90.15 Against US Dollar Amid Trade Deal Delays
The Indian rupee depreciated to a record low of ₹90.15 against the US dollar. Experts attribute this decline to the delay in the U.S.-India trade deal and the Reserve Bank of India's (RBI) current strategy of less aggressive intervention compared to previous years. Foreign investors selling Indian stocks and moving to U.S., European, and Japanese markets have also created a flight of dollars. While a weaker rupee helps exporters by making Indian goods cheaper abroad, it increases the cost of imports, though the impact on the consumer price index is currently considered manageable by economists.
Key Points
- The rupee breached the psychological barrier of ₹90 per dollar, closing at an all-time low of ₹90.15.
- Flight of capital from Indian equity markets to foreign markets is a major factor in the rupee's decline.
- The RBI has been less interventionist, selling fewer dollars from its reserves than in previous periods to arrest depreciation.
- A depreciating rupee makes imports costlier but can boost the competitiveness of Indian exports in the global market.
Exam Facts
- The rupee reached an all-time low of ₹90.15 per USD.
- The RBI sold an average of $10.5 billion monthly from April to September to manage the currency.
- The psychological barrier for the rupee was considered to be ₹90.
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