Mumbai: In the Mumbai currency market, the rupee dropped to a record low against the dollar today. Market sources indicated that the dollar surged further, bringing the rupee down to new lows. With Donald Trump re-elected as U.S. President and the Mumbai stock market facing a downturn, pressure increased on the rupee in the currency exchange.
The dollar, which opened at ₹84.26, shot up to a high of ₹84.39, closing at ₹84.37. This record-high dollar value against the rupee has never been seen before, raising concerns about increased import costs and heightened inflation within the country. Experts warn that this could lead to costlier imports, driving domestic inflation higher. After a 17-paise increase on Wednesday, the dollar gained an additional 8 paise today.
With Trump back in office, economic growth and inflation are both expected to rise in the U.S., potentially delaying any anticipated interest rate cuts by the Federal Reserve. This positively impacted the dollar’s value. Although the global dollar index saw minor fluctuations, initially rising to 105.25 before settling at 104.88.
In Mumbai’s currency market, the British Pound rose by 10 paise to reach ₹109.20, closing at ₹108.91. The Euro gained 4 paise, reaching a high of ₹90.87 before closing at ₹90.68. The Japanese yen appreciated by 0.53% against the rupee, while the Chinese yuan was up by 0.30%, according to market sources.
Discussions in the Mumbai currency market suggest that with the rupee’s rapid decline, the Reserve Bank of India may soon intervene. Analysts predict that public sector banks could step in to sell dollars at higher rates. Additionally, after an initial increase in crude oil prices, a subsequent dip has also influenced the rupee’s movement today.
