The Indian rupee faced a significant setback on Monday, sliding by 12 paise to reach an all-time low of 83.38 against the US dollar. The currency’s decline was attributed to the prevailing negative sentiment in the domestic stock markets and the continuous outflow of foreign funds, according to forex traders.
Trading at the interbank foreign exchange market began at 83.25 for the rupee against the dollar, but the currency struggled throughout the day, culminating in a closing rate of 83.38, marking a 12-paise drop from its previous close.
Market experts noted that the rupee’s tumble to an unprecedented low against the dollar is a reflection of the ongoing strain in the financial markets, driven by factors such as global economic uncertainties and persistent foreign fund outflows from Indian markets.
The continued weakening of the rupee against the US dollar raises concerns about its impact on the Indian economy, especially with regard to inflation and import costs. Analysts are closely observing the currency’s performance amidst these challenging economic conditions and its implications for various sectors.
The current trajectory of the rupee against the dollar underscores the need for proactive measures to stabilize the currency and mitigate its adverse effects on the Indian economy. Experts are closely monitoring market dynamics and policy interventions to address the currency’s decline against the dollar and its potential repercussions on the broader economic landscape.
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