Indian Rupee Falls Past 90-Level Against US Dollar Amid Persistent Dollar Demand
The Indian rupee depreciated by 0.4% in the week ending January 5, 2025, breaking through the 90-level against the US dollar. Despite Reserve Bank of India interventions, the rupee settled at 90.1975, highlighting structural challenges such as the absence of a US-India trade deal and weak corporate hedging activity.
Insights:
The Indian rupee fell sharply by 0.4% in the first week of January 2025, breaking through the psychologically significant 90-level against the US dollar and settling at 90.1975. This depreciation, which marks a critical juncture for the Reserve Bank of India (RBI), occurred despite intervention efforts aimed at stabilizing the currency. The rupee's weakness is attributed to persistent demand for the US dollar and insufficient supply of the Indian rupee , reflecting deeper structural challenges in the currency market.
