The Indian rupee hit a new low in November and experts say it’s due to fundamental reasons. Analysts predict the rupee may trade in the range of ₹83.2 to ₹83.38 this month. This trend has been ongoing since 2022, largely attributed to the appreciation of the US dollar alongside other factors.
The rupee hit a new low of ₹83.40 against the dollar on November 10, causing volatility in the currency. Analysts believe pressure from importers is contributing to the rupee’s downward trend. India’s trade deficit also widened significantly in October, adding pressure on the rupee, while FPI sell-offs further impacted the currency.
The Reserve Bank of India, traditionally known to intervene to support the rupee’s value, has sold dollars three times in recent years to help stabilize the currency. Despite this, the rupee has continued to struggle, prompting concerns about its weakness.
Amidst these challenges, experts anticipate the rupee to continue trading in a narrow range for the remainder of November, possibly influenced global market weaknesses and the prospect of a rebound in the US Dollar index.
Overall, the rupee is expected to face continued pressure and a gradual decline in the near future. This trend has been ongoing since 2022, and is attributed to multiple factors, including the strengthening of the US dollar, global market conditions, and internal economic challenges.