Rupee on shaky ground touches fresh low of 93.73
GS3Economy · S&T · Environment · Security· Monetary policy, RBI & banking· Prelims·
Why in news
The Indian rupee hit a fresh low of 93.73/$ as the Reserve Bank of India (RBI) interventions failed to curb depreciation driven by foreign portfolio investor outflows.
Background
The Indian rupee closed at 92.63/$ on Friday after touching a low of 93.73/$ during the day. Analysts project a further decline towards the 94.50/$ to 95/$ range.
Facts for Prelims
- FactRupee low: 93.73/$ recorded on Friday
- FactRupee closing price: 92.63/$
- BodyReserve Bank of India (RBI) conducts interventions to moderate currency depreciation
For Mains
Q. Analyze the factors contributing to the volatility of the Indian Rupee and evaluate the effectiveness of RBI's intervention mechanisms in managing currency depreciation.
Dimensions to cover in your answer
- Capital flight: Impact of sustained foreign portfolio investor outflows on forex reserves
- External shocks: Correlation between rising crude oil prices and currency depreciation
- Monetary policy trade-offs: Balancing inflation control with currency stability
Keywords: Currency Depreciation · Foreign Portfolio Investment · Forex Intervention · Geopolitical Risk · Monetary Policy
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This note is generated automatically from SatyaDheesh's news feed and mapped to the UPSC CSE syllabus. Check facts against the original report or PIB before using them in an answer.