The Indian Rupee hit a fresh all-time low as the new trading week began on Monday, January 13. The Indian currency breached the 86 mark against the dollar, reaching a new low.
Indian Rupee Hits Fresh Low
The Indian currency was trading at 86.40 at the time of writing. This current rate is much higher than the previous closing of 85.9700 per US dollar.
The season of lows has only continued and persisted over the past few weeks. In fact, the Indian Rupee has not really seen any respite in the brand-new year.
This also comes at a time when the United States is slated to have a change of guards at its administrative front with a new president. Donald Trump after running a viciously divisive campaign will be inaugurated on January 20.
US Dollar Strengthens
The US currency, which is the world’s reserve currency has only seen a rise in its value, ever since his victory in the 2024 Presidential election in November 2024.
This also happens at a time, when oil prices in the international market has jumped significantly, reaching the USD 80 per barrel mark for the time in weeks.
PIxabay
The value of the Indian currency has dropped by 1.90 per cent in a month. Furthermore, the Rupee dropped by 3.48 per cent, just in the past 6 months.
How This Matters
The decline in the currency could have a relay effect on the consumers and therefore inflation. As the value of the national, official currency depreciates, the citizens, whose income has not risen according to the inflation rate, are hampered.
The purchasing power of the consumers goes down.
In addition, while exports become competitive, imports become costly, thereby driving the prices of different products, that may not be manufactured within India.
The Indian Rupee stands at 88.6570 against the Euro. Against the British Pound, the Rupee reached the mark of 105.05.
