Rupee slides to new lifetime low to 86.50 per dollar; What’s Driving the Fall?

The Indian Rupee has plunged to an all time low of 86.50 per US Dollar, prompting concerns across markets. Experts believe that this is the result of a combination of global and domestic factors, such as high crude oil prices, persistent trade deficits, and relentless foreign investor outflows. Aggressive monetary tightening by the US Federal Reserve has further strengthened the Dollar, increasing pressure on emerging market currencies. For India, this steep depreciation could push up import costs, fuel inflation, and strain economic recovery. All eyes are now on policymakers as they navigate this currency crisis.

 

Source: Economic Times