
1. Stronger US Dollar : The dollar has been gaining strength globally, putting pressure on emerging market currencies like the rupee.
2. Rising Crude oil Prices: india, being a major importer of crude oil, is heavily impacted by increasing oil prices, which further weakens the rupee.
To stabilize the rupee, the bank OF INDIA' target='_blank' title='reserve bank of india-Latest Updates, Photos, Videos are a click away, CLICK NOW'>reserve bank of india (RBI) is anticipated to implement corrective actions. To sustain the currency and stop more depreciation, the central bank may modify its policies.
India's foreign exchange reserves fell by $5.693 billion to $634.585 billion as of january 3, according to recent important figures issued by the RBI. Despite this, seasonal demand and a rebound in the manufacturing sector drove a 5.2% increase in India's industrial production (IIP) in november 2024.