Will The â‚ą Breach 90?
The Indian rupee has sharply depreciated against the US dollar, driven by a stronger dollar and Donald Trump’s trade policies. The government and RBI are closely monitoring the situation, intervening to prevent excessive volatility. However, experts warn the rupee could weaken further, possibly reaching Rs 90 per USD. While policymakers insist India’s economic fundamentals remain strong, the opposition questions the handling of the depreciation. What is the immediate impact? A weaker rupee increases import costs, fueling inflation and making fuel, electronics, and foreign education more expensive. Businesses with foreign loans face higher repayment costs, and foreign investors may hesitate, impacting stock markets. India’s trade deficit could widen, putting pressure on forex reserves. While some expect stabilization, the rupee’s long-term trajectory depends on global economic trends and India’s financial policies. Also gain insights on the state of the economy and more from the exclusive interview with Finance Minister Nirmala Sitharaman in Business Today Magazine's latest issue.