© Reuters India’s rupee continues its slide and hits a new all-time low
New Delhi, May 9 (.).- The Indian rupee fell to a new historical low this Monday when it was exchanged for just over 77.4 dollars in the international currency markets, pushed by the US currency and in a context of almost four uninterrupted years of depreciation.
The rupee reached 77.5 per dollar against the previous historical low of 77.02 reached last March.
If until now the increase in prices of the currency and the instability caused by the war in Ukraine had pushed down the value of the rupee, the strength of the dollar has now contributed to the continued depreciation of the Indian currency.
The strength of the US labor market recently made it easier for the Federal Reserve (Fed) to raise interest rates more aggressively to curb inflation.
According to the specialized Indian agency IFA Global, the depreciation of the rupee is compounded by a decline in India’s foreign exchange reserves.
“Lately due to global uncertainty, the Reserve Bank of India (RBI) has been protecting the rupee levels, which has led to a decline in India’s foreign exchange reserves. According to RBI data, the Indian forex reserves shrank to about $600.42 billion in the weekend of April 22 from $617.65 billion in the week of March 25,” IFA reported.
The rupee has already entered 2022 shrouded in weakness, after almost four years of uninterrupted depreciation, and with many experts expecting it to depreciate to record lows by mid-year.
Since a dollar was equivalent to 63.85 rupees on January 1, 2018, the Indian currency has not stopped devaluing, until trading this afternoon at 77.02 per dollar, which translates into a reduction of more than 17% of its value. worth.