The Indian rupee recently hit an all-time low of ₹86.58 against the US dollar, a significant milestone under the Modi government. This decline has raised concerns about the strength of the rupee and its potential impact on the economy, especially in terms of inflation, import costs, and overall economic stability. Various factors, including global market trends, foreign investment inflows, and domestic economic policies, can contribute to such fluctuations in the currency value.
Why is the rupee falling?
Additionally, rising global crude oil prices are also contributing to the rupee’s fall. Brent crude surged to $80.64 per barrel, and as India is a major oil importer, higher prices add more pressure to its fiscal situation.
The Indian stock market also saw a sharp drop on Monday, mirroring the global sell-off prompted by the strong US payroll data, which made emerging markets less appealing.
