- The Indian currency opened at a record low of 91.01 against the U.S. dollar on Tuesday.
- It has declined by nearly 7% year-to-date and by 20% over the past five years against the dollar.
- Major stock indexes fell sharply with the currency decline, impacting key equities like HDFC Bank.
- The currency depreciation increases costs for importers, which may lead to higher prices for consumers.
- Market analysts warn that continued currency weakness could hinder economic recovery efforts and affect stock market performance.
On Tuesday, the Indian currency opened at a lifetime low of 91.01 versus the U.S. dollar, continuing a downward trend lasting ten months. The currency’s decline against the dollar poses challenges to the nation’s economic recovery and is causing disruptions in financial markets.
Following the currency’s drop, the Sensex index fell nearly 450 points, while the Nifty declined by 150 points, reflecting the negative impact on equities. Among the affected stocks, HDFC Bank, a leading banking institution, traded below the 1,000 level at 994. The local currency has underperformed other Asian currencies due to pressure from the U.S. dollar.
Since the start of the year, the currency has depreciated about 6.8% against the U.S. dollar. Over five years, the total fall amounts to approximately 20%, with no sign of stabilization. The currency, which was near 85.93 against the dollar at the beginning of the year, slid to a new low, intensifying concerns about reaching the 100 level.
The depreciation affects the import and export sectors, notably increasing the costs of imported goods. Importers face higher costs as they pay more in local currency terms to buy foreign products. To offset expenses, businesses often raise prices, a burden that eventually falls on consumers who must either pay more or reduce their purchasing.
This situation adds complexity to economic management. While governments and large businesses may use various strategies to shield themselves from currency risks, everyday consumers have limited options. The weakening currency and its broader effects continue to resonate through markets and living costs. For further details, information on market updates can be found here and trading data here.
✅ Follow BITNEWSBOT on Telegram, Facebook, LinkedIn, X.com, and Google News for instant updates.
Previous Articles:
- Stablecoin Growth Slows Despite Rising Supply and Institutional Demand
- Tether’s USDT Growth Slows, Crypto Liquidity Tightens Ahead of Holidays
- React2Shell Vulnerability Exploited for Linux Malware Attacks
- SEC’s Atkins Warns Crypto Risks, Advocates Privacy Tools Amid Dip
- Solana Endures Fourth-Largest DDoS Attack, Network Stays Stable
