New Delhi: The rupee’s depreciation continued on Monday, with the Indian currency touching a new low by day’s end at 79.45 per dollar. A drop of 19 paise led to its further downfall in spite of RBI’s move to infuse more foreign inflows. This came as a fresh setback for the investors who have pledged their money into US assets. Earlier, India’s foreign reserves fell by $ 5.009 billion to $ 588.314 on the first day of July 2022.
The military operations declared by Russia in Ukraine has led to a sharp decline in the country’s import war chest as well. It has declined by over $ 40 billion since February this year. The surging inflation in almost all the countries currently and the fear of recession are being told as the major reasons for such a sharp decline on a regular basis.
INR is just a hop away from reaching a new low of 80 and it is expected that it will touch this figure in this week only.
The story at the beginning of 2022 was a bit different where the Indian rupee was in a way better situation at 74. Economic experts are of the view that regular monitoring of this decline and some impactful steps could be seen in the near future.