The worst might be over for Indian Rupee (for now) as it has boiled up to even higher rates with a fresh two-month high-in the forex market compared to its previous close of 72.31 to the US dollar – a raise of 19 paise since market opened today.
The major depreciation period for Indian Rupee in forex market went on this year and took down the value of Rupee to its lowest, creating an inevitable economic storm in India. Although the government took various measures to bring back the currency to normalcy, nothing really worked and Rupee slid down to an all-time low 74-75 mark against the dollar. After months of struggle, the storm seems to have cooled off as the Indian currency has started to gain back in last couple of weeks and touched its highest value since September 21st.
Today afternoon, the rupee rose past the 72 level to the dollar and hit an intraday high of 71.86 – a fresh two-month high-in the forex market compared to yesterday’s closing price of 72.31 to the US dollar. But, the gained momentum didn’t just happen and the fatter rupee is because global prices of crude oil has hovered down to almost year lows. Other than that, factors like the eased domestic retail inflation, stronger foreign inflows as well as RBI’s efforts and intervention have helped a little in getting the domestic currency rescued from the pitfall.
Economy experts have predicted that the currency will settle in the range of 71.50 and 71.20 to the dollar in coming days. Although the worst might be over, but it is not completely void of risks as some troubles are brewing up on national and international fronts, which can stone down the currency. Like, the dollar gaining strength, which has not been a problem for Rupee yet, but it can be. Other than that, national factors like the upcoming national elections are very influential too.