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.
However, gains in domestic equities supported the rupee and capped its losses to some extent, they added.
The Indian rupee recouped most of its early losses and closed marginally lower at 69.28 to the US dollar after the Reserve Bank in a widely expected move cut key interest rates by 0.25 percentage point.
The benchmark BSE Sensex was trading with gains of 150.56 points, or 0.39 per cent, at 38,864.41; while the NSE Nifty was trading at 11,692.05, up 50.25 points, or 0.43 per cent. Meanwhile, brent crude, the global benchmark, was trading at 74.14 per barrel lower by 0.28 per cent.
Fresh dollar demand from banks and importers weighed on the Indian currency.
"We have delivered for both the quarter and fiscal exceptionally well to post $1 billion (Rs 7,022 crore) for the year under review (2018-19)."
