New currency metrics revealed on Monday revealed that the Indian rupee has hit its lowest level against the US dollar. INR’s value has fallen below 84 for the first time in history as it trades below 84 against a visibly strong dollar. New developments are pushing INR down to hit new lows. The INR’s latest plunge to 84 is dubbed a lifetime low, adding more pressure to the Indian economic structure.
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Indian Rupee Weakens To New Lows
Recent currency metrics indicate that the Indian rupee has hit a record low against the US dollar. INR is currently sitting at 84.0725, further down from its earlier low of 84.07. At the same time, the US dollar shows signs of positive progression, opening at 103 on Monday, up 0.13% in the process.
The rupee has noted a significant decline in its value, primarily due to the constant outflows of foreign investments noted in the Indian economic structure as of late.
The persistent outflow of funds has resulted in the rupee documenting new depreciation levels. Indian equities documented outflows worth $6.4 billion in October as changing geopolitical narratives signaled investors to explore risk-off assets.
In addition, the exorbitant crude oil prices are also hammering the INR, resulting in the currency noting a plunging decline in its valuation. Crude oil prices have also surged significantly, as Israel-Iran war speculation is compelling the world to act with caution. Alongside that, the Hurricane Milton development in Florida is also impacting oil production in the US, spiking the price of crude oil in the process.
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US Dollar Remains Strong Despite Headwinds
The US dollar index remains stable at 103.10, up 0.13% at press time. The greenback is showing signs of recovery and is currently dominating its competitors.
Goldman Sachs, a leading financial giant, has issued another bullish prediction for the USD. According to GS, the US dollar will continue to emerge as a strong market entity, encountering minimal to temporary erosion, which may have no lingering impact on the USD for the long haul.
“We think there are a number of factors that will keep the US dollar stronger for longer. Chief among those reasons is the strength of the US economy. Despite high interest rates, the US economy is doing pretty well, supporting US stocks. And the rate cuts that we are likely to see within the next 12 months should not erode the yield on dollar bonds too far either. Better growth or asset market returns in the rest of the world are the main channel for a weaker US dollar, but there are also some scenarios that could push the dollar even stronger than it is now.”
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