archiveRupee Vs Dollar

The Indian rupee weakened sharply on Monday, falling alongside most emerging market (EM) currencies after US President Donald Trump threatened new reciprocal tariffs and penalties on countries aligned with BRICS.The rupee ended at 85.85 per US dollar, down 0.54% from Friday’s close of 85.39, after hitting an intraday low of 86.02. The dollar strengthened broadly after Trump unveiled a new tariff policy targeting countries he said are "aligning themselves with the Anti-American policies" of the BRICS group, prompting a selloff in emerging market currencies.In a social media post, Trump said...

As of end-November 2024, the 40-currency trade-weighted Real Effective Exchange Rate (REER) stood at 108.13—the highest on record—indicating that the Rupee was significantly overvalued.By end-April, the REER had corrected to 100.80, suggesting the overvaluation had already been addressed. That’s the latest available data, as per the RBI bulletin. However, since then, the Rupee has underperformed its Asian peers.It has been the worst performer—weakening 1.3% against the Dollar—while the offshore Yuan has appreciated 1.1% during the same period.Other Asian currencies have gained between 0.4% and 7%. Based on this trend, the...