Indian rupee touches record low against greenback

NEW DELHI, 9 May 2022:

The Indian rupee today dropped to a new all-time low, trading at over 77.4 rupees per US dollar in international currency markets, continuing its depreciation trend from the last four years.

This is the rupee’s lowest value since March, when it had touched the price of 77.02 units per US dollar.

Rupee’s devaluation had so far been attributed to rising oil prices and the instability caused by the Ukraine war, but now a stronger greenback has contributed to a further slump in the Indian currency.

The resilience of the US labour market recently helped the Federal Reserve aggressively increase its interest rates to check inflation.

As per Indian consultancy IFA global, the slump in rupee follows a drop in India’s foreign currency reserves.

“Lately due to global uncertainty, the Reserve Bank of India (RBI) has been protecting the rupee levels which has led to a drop in India’s forex reserve. As per RBI data, India’s forex reserves decreased to US$600.42 billion in the week ended April 22 from US$617.65 billion in the week ended March 25,” the IFA said.

Rupee has already been weak since the beginning of 2022 after four years of an uninterrupted slide and many experts had predicted it to drop to its lowest point by the middle of this year.

The Indian currency has continued to depreciate since 1 Jan 2018, when it stood at 63.85 rupees per US dollar, having lost 17% of its value since then as per today’s figures.