Rupee's Value Against Dollar Hits Lowest Ever at 77.73
The value of rupee has hit its lowest ever at 77.73 against a dollar.
On Tuesday, the Indian Rupee weakened as it recorded its lowest ever at 77.73 against the dollar. The Indian Rupee is tracking gains in the U.S. currency alongside weakening in the offshore markets, with traders watching the domestic share market for clues to fund flows, as per a report by CNBC TV18.
By 0358 GMT, the partially convertible rupee was trading at 77.73/74 to the dollar. On Friday, the trading closed at 77.45. Previously, the value of the Indian Rupee declined on May 11 when it reached 77.44 against the dollar.
The Reserve Bank of India (RBI) uses Forex reserves to stem currency loss. However, as per the data by RBI, even the Forex reserves have declined to their lowest this year.
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A few possible reasons for the declining value of the Indian Rupee
- Geopolitical situations due to Russia's invasion of Ukraine have put significant pressure on Indian Rupee. Due to sanctions imposed by the western countries on Russia, the global markets became volatile. The crude oil prices have reached their all-time highest.
- Invasion of Russia and fresh lockdowns in China have created significant pressure on inflation.
- Declining reserves of Forex are another major factor for the Indian Rupee losing its value. It is for the first time ever that India's Forex reserves have declined below the $600 billion mark in a year.
- A continuous withdrawal by Foreign investors over the past 7 months is impacting to weaken the value of the Indian Rupee against the dollar. Since October 2022, there has been a withdrawal of more than Rs. 2.92 lakh crore from the markets.
