The Indian rupee has reached its lowest value in history, marking a pivotal moment in India’s financial landscape.
The strengthening U.S. dollar has affected not just India but other emerging market currencies, amplifying global financial instability.
Foreign portfolio investors have pulled over $5 billion from Indian equity markets this year, worsening the rupee's decline.
International geopolitical tensions, such as conflicts in Europe, have diverted investments from emerging markets to safer assets like the U.S. dollar.
RBI’s sale of U.S. dollars has led to a noticeable depletion of India’s foreign exchange reserves, which dropped below $600 billion for the first time in months.
The rupee is among the worst-performing Asian currencies in 2024, reflecting both domestic and international vulnerabilities.
While the RBI's interventions aim to stabilize the rupee, it has raised concerns about the long-term sustainability of forex reserves.
The rupee’s depreciation has made overseas education and travel significantly costlier for Indian citizens.
India's currency weakness is also tied to global inflationary pressures, reducing purchasing power across multiple sectors.
Despite its depreciation, India’s economic fundamentals remain robust, giving hope for future recovery in the rupee’s strength.