The dismal narrative of the dwindling Rupee continues

The dismal narrative of the dwindling Rupee continues

The Indian rupee tumbled further by 43 paise to trade at 20.05 against the UAE dirham. The currency thus ended at an all-time low yesterday amidst fluctuating markets. As crude oil prices remain in the higher spectrum, the rupee continues to weaken. The trend may continue unless the oil prices see a decline.

Meanwhile, the currency closed at 72.91 against the US dollar on Monday. This situation had a backdrop of consistent capital outflows and the considerable strengthening of the greenback. Higher US treasury yields also lend credence to the strengthening of the dollar, which rose to a one-month high against global currencies.

The Reserve Bank of India has now announced that it would bring in liquidity of about INR 36,000 crore into the system through the avenue of government bonds that it would buy. This measure is also to cater for for festival demands that will peak during this month.