New Delhi: The Indian currency rupee has set a new record of falling. The rupee is constantly hitting new lows one after another. Today, on Monday, amid a heavy fall in the stock markets (Sensex), the rupee also set a new record of decline and has reached a new all-time law. The rupee dipped below the 80 level during trading once in July, but the Indian currency managed to recover later in the session. The rupee fell 0.25 percent to 80.03 against the US dollar as trading began today on the Interbank Forex Exchange. Earlier, the rupee opened at 80.07 against the US dollar today and fell to 80.13 at one point. This is a new all-time low level for the Indian currency rupee.
Currencies around the world are falling sharply against the dollar after the pace of interest rate hikes in the US showed no signs of slowing down. Investors are pulling money out of markets around the world and putting their investments in the US dollar for safety after the signal from the Federal Reserve. Due to this worst phase is going on for all other currencies including Indian currency ‘Rupee (INR)’. As for the rupee, its value has come down very fast in recent times.
Rupee depreciated 7 times this year
If we look at the figures, the rupee has depreciated by around 7 percent so far this year. The value of the rupee is continuously depreciating against the US dollar. The continued strength of the dollar against a basket of major currencies has also weakened the rupee. After nearly two decades, the euro has depreciated against the US dollar, while the euro has remained consistently above the US dollar. As for the Indian rupee, since December 2014, it has depreciated by around 25 percent against the US dollar. A year ago, the rupee stood at 74.54 against the US dollar.
The currency of many countries of the world weakened
Poor condition of other countries’ currencies is not only depreciating the value of the Indian rupee against the US dollar. A look at the data shows that the rupee has nevertheless shown some strength against the US dollar compared to other major currencies. Other currencies depreciated by more than Rs. As far as Asian currencies are concerned, the South Korean won has seen the biggest drop of 1.3 percent during the last 24 hours. Apart from this, 0.8 percent in Thai baht, 0.64 percent in Japanese yen, 0.6 percent in Chinese renminbi, 0.6 percent in Taiwan dollar, 0.5 percent in Malaysian ringgit (Malaysian ringgit), 4.30 percent in Indonesian dollar prices have decreased. For this reason, the dollar is rising. In fact, the changing situation has created a risk of recession all over the world. Inflation in the US is at a 41-year high. To counter this, the Federal Reserve has been raising interest rates rapidly. The US dollar is benefiting from the increase in interest rates in the US. Foreign investors are pulling money out of emerging markets and buying dollars as a safe-haven investment, fearing a slowdown. This event has unexpectedly strengthened the US dollar. For this reason, for the first time in many decades, the value of the US dollar has surpassed the euro, when the euro was a more expensive currency than the US dollar.