India pushing Rupee as next global trade instrument
It is not just Western sanctions on Russia that accelerated the trend to circumvent the dollar, but the strength of the currency in the past year has also posed a challenge.
It is not just Western sanctions on Russia that accelerated the trend to circumvent the dollar, but the strength of the currency in the past year has also posed a challenge.
With the Reserve Bank of India's Inter-Departmental Group having expressed the view that the rupee possesses the potential of evolving into a global currency in the wake of India's resilient economic growth amid global challenges, the potential of such a development is significant for India's economic growth and international standing.
According to RBI's latest data, India's foreign currency assets, the biggest component of the forex reserves, fell by USD 4.38 billion to USD 509.691 billion.
The Pakistani rupee resumed its downwards slide on Thursday after two modest sessions as the "optimism surrounding the government and IMF talks scaled back", local media reported.
The Indian rupee came down against the US dollar on Monday, crossing the Rs 81 mark vis-a-vis a dollar.
India's foreign exchange reserves during the week that ended on October 14 fell to an over two-year low of USD 528.367 billion, a drop of USD 4.5 billion from the previous week.
The rupee touched a historic low of 83.18 against the dollar briefly during intraday trading, before it closed at 82.74 on Wednesday. However, the rupee's close of 82.74 was lower than Tuesday's close of 82.45 against the dollar.
As the rupee continues with its downward trend against the dollar, touching 82.32 on Friday, Finance Minister Nirmala Sitharaman has said that she sees the phenomenon as the dollar strengthening and not the Indian currency sliding.
The Indian rupee on Friday, depreciated 16 paise to its all-time low of 82.33 against the dollar owing to a rise in US bond yields and climbing crude oil prices.
On Thursday, the rupee plunged 32 paise to close at an all-time low of 81.94 against the US dollar. High volatility in the crude oil market led to the fall of the rupee.
