Rupee hits all-time low: How much further will the rupee depreciate? The question is still on the minds of the people. Because the rupee is falling day by day and setting a new record. On Thursday, the rupee closed at an all-time low of Rs 77.72 against the dollar. The rupee has depreciated against the dollar over the past 10 days.
Record a decrease of five days
The rupee closed at 77.72 against the dollar on Thursday, May 19, the lowest level ever. The rupee closed at 77.61 against the dollar on Wednesday, May 18. The rupee closed at 77.44 against the dollar on Tuesday, May 17. The rupee closed at 77.55 against the dollar on Monday, May 16. The rupee had closed at 77.50 against the dollar in the previous session on Friday, May 13.
RBI intervention does not stop there
The RBI has taken several new measures to stem the rupee’s fall. RBI sold dollars. But foreign investors are constantly selling and withdrawing their investments in the Indian stock market, causing the rupee to weaken against the dollar. Foreign investors have so far withdrawn Rs 30,000 crore in May. So far in 2022, foreign investors have withdrawn Rs 1.57 lakh crore from Indian markets. If the rupee is not maintained, due to the fall of the rupee, inflation may hit the people more and imports may become more expensive, in which case companies will place the burden directly on the general public.
The rupee may continue to fall
According to many experts, the rupee may weaken against the dollar and fall to 80 against the dollar in the coming days. In fact, in view of rising inflation in the US, if the Federal Reserve decides to raise interest rates, investors may withdraw money from emerging markets such as India, which could further weaken the rupee. Currently, the rupee is depreciating for international as well as domestic reasons. Not only the fall in stock markets, but also the continued selling of foreign funds amid the rising trend of interest rates internationally has put pressure on the rupee. The rupee depreciated against the dollar on weak crude oil prices and other currencies.
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