Under Strain
The rupee drifting beyond the 90-per-dollar mark is not merely another data point in the market’s daily churn.
The rupee drifting beyond the 90-per-dollar mark is not merely another data point in the market’s daily churn.
Indian businesses and Firms would do well to reinvigorate the “Made In India” as a hallmark of unquestionable Quality, the report suggested.
Wall Street pundits and investors are schizophrenic about the dollar. The dollar weakened after Moody’s cut the US credit rating by one notch from Aaa (the highest rating — to Aa1, attributing the downgrade to the increasing fiscal deficit, as well as the rising interest rate costs on Federal government debt.
As the Indian rupee reached a record low of 87.58 to the dollar on Thursday, it finds itself at a critical juncture, navigating a sea of global and domestic pressures.
The latest statement by US President-elect Donald Trump demanding that Brics nations pledge not to create or support a new currency to challenge the American dollar reflects growing apprehension about dedollarisation.
The Indian rupee ended almost flat against the US dollar on Monday, with just 3 paise fall, at 79.77. At the interbank foreign exchange market, rupee ended at 79.77, against 79.74 on the previous trading session against the US dollar.
Tightening is required on both fronts. How many dollars are moving out/in on trade/current account must be monitored on a daily basis.
Although depreciation of the currency makes imported goods expensive, and foreign travel and fees for studying abroad become costly, it is an erroneous presumption that absence of a strong currency is necessarily bad.
The country's forex reserves consist of FCAs, gold reserves, SDRs, and the country's reserve position with the IMF.
Rupee traded weak as dollar index rallied on the back of US FED tapering bond-buying hints in weeks ahead," said Jateen Trivedi.
