Why the Indian rupee is so broken in front of US dollar, what do market experts say?

Rupee vs dollar: The Indian rupee declined a tremendous decline in recent times and it went to the historic lower level. A day ago, on Thursday, the rupee fell 35 paise to 88.20 compared to the US currency in the interbank foreign currency exchange market. This was a major decline after the rapid rise of the rupee by the last four days. In such a situation, the question is arising as to why the Indian currency is declining in this way and is some market experts about this so that its weakness can be limited.

Why weakness in rupee?

In fact, due to the continuous weakness in Indian rupee, the market experts are assuming the heavy pressure on the domestic currency due to the market experts and the withdrawal of foreign capital. According to Dilip Parmar, Senior Research Analyst of HDFC Securities, there was a hindrance in the four -day rise of Rs, which shows weakness in regional currencies. He said that the US dollar rose rapidly after a reduction in interest rates by US central bank US Fed by 0.25 percent. Especially when it is indicated that two more cuttings are proposed by the end of the year 2025. On Wednesday, the Indian currency increased by 24 paise to 87.85 against the US dollar.

When will the rupee fall?

According to Anuj Chaudhary, the research analyst (commodity and currency) of Mirai Asset sharekhan about the continuous weakness in the rupee, he says that due to the aggressive stance of the US Fed and the strengthening of the dollar, there was a huge decline in the Indian currency. He further said that the US central bank has reduced the interest rates by 0.25 percent. Also, by the end of this year, the Federal Reserve is expected to cut twice in the year 2025 and 0.25 percent and only 0.25 percent in 2026.

Although there is a close watch of the Reserve Bank of India on the decline in Indian rupee and its efforts have limited its decline, on the other hand its weakness has definitely brought the government to worry.

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