The rupee continues to fall due to the strength of the US dollar. On Wednesday, the indian rupee closed at its lowest level for the seventh consecutive session against the US dollar. This fall confirmed the fears of recession and inflation in many parts of the world. On Wednesday, the rupee closed at a record low of 85.6450 against the dollar, which had closed at 85.6150 in the previous session.
Rupee will remain under pressure
However, on the first day of the year, trading was slower than usual due to New Year celebrations in many parts of the world. But traders believe that the rupee will remain under pressure in the domestic market due to slow growth rate and increasing trade deficit against the continuous strength of the dollar. amit Pabari, MD of FX advisory firm CR Forex, while talking to The Mint, said, "Temporary pressure is expected to remain on the rupee and it can trade between 85.20 to 85.80." Continuous fall in rupee remains a challenge Earlier, the rupee had reached its lowest level of 85.80 per dollar during trading on december 27, which reflects the biggest weekly decline in the last two years.
In the year 2024, the indian rupee has registered a decline for the seventh consecutive year. Behind this are many big decisions taken in the last quarter, such as donald trump becoming the President of America once again, which has led to a rise in the dollar. In contrast, the rate of economic growth in india remains slow and the trade deficit is going to increase. Apart from this, the weakening of capital flow is also a problem for the rupee.
After strong investment in 2023, foreign investors have reduced their investment in the indian stock market in 2024. In 2024, foreign investors made a net purchase of only $124 million in indian equities, which is less than $20.7 billion in 2023. However, during this period, heavy investment was made in bonds, in which investors have estimated a decline in 2025. For this, the interest rates of the central banks of india and America and the pace of the rupee are two factors that need attention.
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