Rupee's Continuous Decline Against the Dollar

The Indian rupee has seen a significant drop, nearing the 86 level against the US dollar, marking its tenth consecutive week of decline. This persistent fall has raised concerns among investors and policymakers alike.

Impact of US Non-Farm Payroll Data

The sharp increase in the dollar index late evening, following the US non-farm payroll data exceeding expectations, suggests that the rupee might breach the 86 levels soon. This data has significantly influenced the global financial markets, affecting currencies worldwide.

RBI's Efforts to Stabilize the Rupee

In response to the rupee's decline, the Reserve Bank of India (RBI) has been actively defending the currency, leading to a continued decrease in the country's foreign exchange reserves. The reserves have dropped to a 10-month low, highlighting the challenges faced by the Indian economy.

Market Speculations and Future Outlook

With the new RBI governor, Sanjay Malhotra, completing his first week in office, the financial markets are keenly awaiting his stance on key economic issues such as growth, inflation, and the exchange rate. The rupee's future trajectory remains uncertain, with market participants closely monitoring global and domestic developments.