New Delhi, 20 October: The decline in the Indian currency is also visible on Thursday. The rupee has once again hit a record low today. The Indian currency crossed the Rs 83 level against the dollar for the first time on Wednesday.
However, with a recovery of two paise later, the Indian currency ended Wednesday’s trading at the Rs 89.99 level. In early trade, the Indian currency fell by 9 paise to a record low of Rs 83.08 per dollar.
Money market experts believe that due to the strength of 0.3 percent in the dollar index, the pressure on currencies around the world has increased more than before. Due to this, like other currencies, the value of the rupee has also declined against the dollar. If the dollar index does not make a downward trend in the coming days, then the price of the Indian currency can fall to Rs 83.80 per dollar. Market expert Mayank Mohan says that the possibility of a correction in the rupee can be made only when the Reserve Bank increases the flow of dollars from its foreign exchange reserves in the Indian currency market.
However, due to the strength of the dollar index, this measure can definitely put an immediate stop to the fall in the value of the rupee, but as soon as the flow of dollars is stopped by the Reserve Bank, the value of the rupee will once again be reduced. There could be a sharp decline in the trend. In such a situation, the Reserve Bank should intervene in the money market only when there is a possibility of a sudden sharp fall in the rupee.
The dollar index has reached a record high level in the last 20 years, due to which most currencies around the world are trading lower against the dollar. Due to the strength of the dollar index, besides the Indian currency, the British pound, Japanese yen and the European Union’s currency Euro are trading at record levels against the dollar.
It is a matter of relief that the depreciation of the rupee against the dollar is less than that of other major currencies of the world. Due to the strength of the fundamentals of the Indian economy, the rupee has been making repeated attempts to recover against the dollar. The currency of most countries has a continuous declining trend against the dollar.
A few days ago, Finance Minister Nirmala Sitharaman had also clarified that the fall of the Indian currency rupee has remained only against the dollar and the reason for this is not the weakness of the rupee, but the strength of the dollar index at a record level. Experts say that if the rupee weakened, then the Indian currency would have been weaker in comparison to other major currencies around the world, but at present, the rupee remains strong in comparison to other major currencies. It is clear from this that the rupee has remained strong, but due to the record-high level of the dollar index, the rupee seems to be continuously weakening against the dollar.
