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News Wire / economy

Indian Rupee Hits Record Low Against Dollar

Bloomberg Radio Mumbai 12d7d Impact 8

The Indian rupee has fallen to a record low against the US dollar. Rebecca Bunden reported on the factors driving the currency's decline from Mumbai. The movement is linked to broader regional instability. Pressure on the currency is driven by India's heavy dependence on energy imports, requiring the sale of rupees to purchase oil and US dollars. Additionally, a hawkish tone from the US Federal Reserve has weighed on the rupee. While the Federal Reserve held interest rates steady at its latest meeting, it signaled that rates could remain higher for longer, increasing the attractiveness of US assets. The central bank has attempted to curb speculative activity by capping banks' net open rupee positions. Foreign investors have withdrawn more than 20 billion from the market. Speculation suggests the RBI may need further interventions to support the currency.

The Indian rupee has fallen to a record low against the US dollar. Rebecca Bunden reported on the factors driving the currency's decline from Mumbai. The movement is linked to broader regional instability. Pressure on the currency is driven by India's heavy dependence on energy imports, requiring the sale of rupees to purchase oil and US dollars. Additionally, a hawkish tone from the US Federal Reserve has weighed on the rupee. While the Federal Reserve held interest rates steady at its latest meeting, it signaled that rates could remain higher for longer, increasing the attractiveness of US assets. The central bank has attempted to curb speculative activity by capping banks' net open rupee positions. Foreign investors have withdrawn more than 20 billion from the market. Speculation suggests the RBI may need further interventions to support the currency. Analysts suggest the Reserve Bank of India may need to intervene to support the currency as soft rupee values and stock market outflows reinforce each other. The decline coincides with rising oil prices exceeding 113 USD per barrel. Analysts are considering a return to 2013 Reserve Bank of India measures to address capital outflows and energy costs.

Topics

currency forex rupee

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Sources · 7 independent

Bloomberg Radio

“the Indian rupee falling to a record low, erasing the RBI driven gains currently the rupee trading at 95.1, 362 versus the USD.”

BBC World Service

“The Indian rupee also fell to a record low of just over $95 to the dollar amidst those rising crude prices.”

CNA938 Singapore

“the Indian rupee hitting an historic low of 95.32 against the dollar before regaining just a little strength. Picking up on the rupee, it's about 4% down since the start of conflict in the Middle East at the end of February.”

CNA938 Singapore

“Because of capital moving towards US traceries which is considered to be much more safer heaven this FPA outflows have further pressurized Indian rupee.”

CNA938 Singapore

“The rupee's later slide comes despite steps taken by India's central bank, the Reserve Bank of India to support the tone from the US Federal Reserve.”

CNA938 Singapore

“Indian rupee meantime is seeing big moves as well, hitting historic lows. about 4% since the Middle East conflict began.”

CNA938 Singapore

“It's down about 4% since the Middle East conflict began. Rebecca. And that puts pressure on its currency given that India depends heavily on energy imports and rupees have to be sold to buy oil and dollars.”

CNA938 Singapore

“the rupee's later slide comes despite steps taken by India's central bank, the Reserve Thank you.”

CNA938 Singapore

“the rupee is being dragged down by a hawkish tone from the US Federal Reserve. The central bank left interest rates on hold at its latest policy meeting but signalled they could remain higher for longer”

CNA938 Singapore

“The currency's fresh weakness has prompted speculation that the RBI may need to step in again to support it. Foreign investors have pulled out more than 20 billion.”

Bluesky Social

“Indická rupie klesla v úterý na rekordních 95,4/USD při růstu ropy nad 113 USD”

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