The Indian rupee often experiences periodic declines against the US dollar due to various factors.
Whether this drop is a result of the recent US election outcomes or an independent event, it’s important to note that the rupee has now hit a new all-time low of 84.30 against the dollar.
Experts cite Trump's win as a factor in the U.S. dollar’s strengthening, impacting emerging market currencies like the rupee. This depreciation may lead to higher import costs in India, affecting everything from fuel prices to consumer goods.
Analysts suggest that the Reserve Bank of India might intervene to stabilize the currency yet caution remains high with potential impacts on inflation and trade balance.
In the coming days markets will be watching closely to see how both Indian and US policy adjustments unfold as the rupee’s performance could influence economic strategies heading into the next fiscal year.