The brokerage said that a potential correction in valuations, unwinding of the artificial intelligence (AI) trade, and reopening of the Strait of Hormuz for smoother business activity could help reverse the ongoing foreign outflows.
Amid the falling Indian Rupee, the Reserve Bank of India (RBI) came into play with all the available options to stabilise the falling currency against the US Dollar.
Rising crude oil prices and massive foreign investor withdrawals have intensified pressure on the Indian currency market. Growing geopolitical tensions and stronger dollar demand continue to weaken the rupee.
The Indian rupee fell 0.3 per cent to 91.0750, hitting a record low for a fourth consecutive session.
Nageswaran’s comments came at a time when the rupee hit a record low, crossing the 90-mark against the US dollar in opening trade.
The Indian rupee’s slide to a record low, crossing Rs 90 to the US dollar on Wednesday morning, marks one of the sharpest currency pressures India has experienced in recent years.
The Indian rupee has hit an all-time low, trading at around 89.66 against the US dollar, sparking criticism from the Congress.
The Indian rupee’s recent struggles underscore the intricate dynamics of global and domestic factors influencing its value.
The Reserve Bank of India (RBI) in its report highlighted that the Real Effective Exchange Rate (REER) of the Indian Rupee increased to 108.14 in November 2024 from 107.20 in October 2024.
The Indian rupee has breached the significant psychological barrier of 85 against the US dollar, marking an all-time low amid a confluence of domestic and global pressures.
