By Admin 
Indian Rupee Fall: There have been huge fluctuations in the Indian currency rupee this year. Since the beginning of the year till now, there has been a decline of about 5 percent in the rupee. With this decline, the rupee has become the worst performing currency in the Asian markets. However, some relief from this decline may come from the reduction in repo rate by RBI.
Recently, RBI had decided to cut repo interest rates by 25 basis points. Also, RBI has purchased open market bonds worth Rs 1 lakh crore and has tried to reduce the dollar shortage through a swap of $5 billion. These decisions have brought some relief to the market but now everyone’s attention is on the US Federal Reserve meeting this week.
Effect of US Fed rate cut
According to a report published in CNBC Awaaz, market experts believe that the US Fed will announce a rate cut of 25 basis points in the December 9 and 10 meeting. This reduction provides support to the currencies of other markets. However, this time its impact on the rupee may be limited. Market experts feel that the US Fed rate cut will not have much impact on the Indian rupee.
Besides, India’s trade gap is continuously increasing and foreign investors are also not showing confidence in the Indian market. Due to which the rupee is continuously weakening. Experts believe that unless a trade deal is agreed upon between India and America, no major change is possible in the ongoing decline in the rupee.
Rupee declined again
On Monday, the first trading day of the week, the rupee declined and crossed Rs 90 per dollar. The effect of rising crude oil prices and continuous selling by foreign investors was seen on the rupee prices. In early trading, the rupee weakened by 16 paise to Rs 90.11 against the dollar.
Also read: Gold Price Today: Did gold prices increase or decrease? Know at what rate gold is being sold from Delhi to Patna on 8th December