BRICS: Why Is the Indian Rupee Crashing Against the US Dollar?

BRICS member India’s local currency the Rupee is falling to a new low on Monday against the US dollar. The Indian Rupee plummeted to 83.38 as the US dollar gained strength against all the BRICS local currencies this month. The Rupee is relentlessly experiencing a dip due to various factors including local and international financial pressure. Despite India’s thriving economy, the Rupee’s lackluster performance in the currency market is a cause of worry for the Modi administration.

Also Read: BRICS: De-Dollarization Gaining Steam in Developing Countries

Source: Google

BRICS: What’s Happening With the US Dollar and the Indian Rupee?

brics indian rupee us dollar
Source: Bloomberg

The Rupee’s fall comes after leading global banks and traders were seen bidding for the US dollar and not the Rupee. The move was most likely initiated on behalf of institutional and custodial clients of the global banks. The result led the Rupee to become “sticky in the 5-10 paisa zone near 83.30” said a trader to Reuters.

Also Read: BRICS: US Dollar Top Loser as Saudi Arabia Pays Chinese Yuan For Trade

The development isn’t limited to the Rupee alone, as Asian currencies performed below expectations against the US dollar this quarter. BRICS currencies like the Chinese Yuan, South African Rand, and Argentina’s Peso, among others, fell to new lows in Q4 of 2023.

The Rupee is expected to remain between its support and resistance level and most likely will not move strongly in both directions. “Broadly, the rupee is likely to stay rangebound but small depreciations can’t be ruled out,” said Dilip Parmar, a foreign exchange research analyst at HDFC Securities.

Also Read: BRICS: China, Russia & India To Replace the US Dollar in Global Trade?

However, Nuvama Alternative & Quantitative Research warned that the Indian equity markets could receive an inflow of $1.5 billion soon. The inflows are related to the rebalancing of the MSCI index and will be effective from November 30, 2023.

The Rupee might trade higher in December next month after the rebalancing of $1.5 billion in the equity market. Therefore, BRICS member India’s only chance to outperform the US dollar could be in December 2023.

  • BRICS
  • Rupee
  • US DOLLAR

Comments

Post a Comment

Popular posts from this blog

3 Top Trending Tokens of 2024: Solana, Retik Finance, Shiba Inu

Image
As we enter 2024, the crypto world eagerly speculates which blockchain projects could dominate the upcoming year. Analyzing recent traction, developments, and market dynamics, we can spotlight the top trending tokens poised for greatness when midnight strikes.Three digital assets are prime contenders to lead the 2024 charge - Solana, Retik Finance, and Shiba Inu. Each brings unique attributes to capture investor attention and potentially mainstream adoption. Solana - The Speed Demon Known as one of the fastest and most scalable blockchain networks, Solana has already witnessed tremendous growth since launching in 2020. Yet 2023 seemingly marked a turning point, with several bullish events driving momentum.Most recently, Solana hosted its long-awaited IGNITION conference, drawing over 1,400 attendees and coinciding with a 70% price pump for its SOL token. The team also committed over $100 million to initiatives like Web3 mobile phones and an updated Solana wallet.With blazing tran
Read more

Missed Solana Rise, These Altcoins Might Rise Higher

Image
If there was one coin that exceeded even the most positive expectations it would be Solana (SOL). The December performance of the coin showed that anything is possible for the crypto market and it might not be the only cryptocurrency that stands to gain from the growing interest in altcoins. The coin experienced 59.5% to 69.7% surges in the span of weeks and days, which must have been very encouraging for those who believed in it and had already accumulated significant amounts.  Missing out on such a rapid ascent hurt many crypto enthusiasts, but nothing is lost for those who failed to buy into Slana (SOL) in time. We did our best to compile a list of those altcoins that could be ready to experience significant gains over the next several weeks, or months, and we believe that these coins have the potential to surpass the rates of Solana (SOL). Top Altcoins That Might Rise Higher ScapesMania : Promising newcomer in presale, offering early investment benefits. Aptos (
Read more

3 Tokens That Could Give 25x Returns in 2024

Image
The crypto market is known for its extreme volatility and ability to produce incredible returns within short periods. As we enter 2024, many wonder which cryptocurrencies have the potential to rally hard and deliver outsized gains to investors. Three tokens—Shiba Inu (SHIB), Retik Finance (RETIK), and Dogecoin (DOGE)—stand out due to their solid foundations and unique value propositions. Shiba Inu (SHIB) - The Top Meme Coin Contender Shiba Inu entered the crypto scene in 2020 as a self-proclaimed "Dogecoin killer." Shiba Inu's (SHIB) cute Shiba Inu theme quickly captivated investors and grew an extremely passionate community. In 2021, Shiba Inu (SHIB) delivered mind-blowing 43 million percent gains as speculation went parabolic.Although Shiba Inu has retreated significantly from its all-time high of $0.000088, it remains a top contender to rally hard in the next bull market. As one of the most prominent meme coins with a robust ecosystem, there is substantial confid
Read more