Another 'bloodbath' for Indian Rupee, hits 82.95 against the Dollar

The Indian rupee fell to a record low of 82.95 after the US dollar strengthened against all major currencies globally.
All major currencies including the Indian Rupee are experiencing a bloodbath. (Representative Image)
All major currencies including the Indian Rupee are experiencing a bloodbath. (Representative Image)IANS

The Indian rupee on Wednesday hit a new low of 82.95 against the US dollar in anticipation of more rate hikes by major central banks across the globe to curb rising inflation.

The currency fell to a record low of 82.95 after the US dollar strengthened against all major currencies globally.

The dollar's ascent has been triggered by inflation in the UK hitting a 40-year high-level last month, owing to rising food prices.

There are speculations that the Bank of England may hike interest rates sooner than expected to curb the price rise.

Last week while commenting on the Indian rupee's fall, Finance Minister Nirmala Sitharaman had said in Washington that she saw it as the US dollar strengthening rather than the rupee falling.

See Rupee slide as a case of Dollar strengthening: Finance Minister Nirmala Sitharaman

Addressing a press conference in Washington last Friday, Sitharaman had said that the Indian rupee has withstood the dollar's rise and has performed better than those of many emerging market currencies.

Finance Minister Nirmala Sitharaman (File Photo)
Finance Minister Nirmala Sitharaman (File Photo)Press Information Bureau, Government of India (Wikimedia Commons)

"I won't see this as the rupee sliding but as the dollar strengthening. It is a matter of fact that the rupee has withstood the rise of the dollar. But it has performed better than many other emerging market currencies," she said.

The Finance Minister had added that RBI is working to prevent its slide and contain its volatility.

"I will just say that rupee will find its own level," she said.

On rising inflation and soaring food prices, the Finance Minister had said that the economic fundamentals were good.

Foreign exchange reserves are in a "comfortable position" and inflation is also "manageable" she was heard saying.

"Fundamentals are good. Foreign exchange is good though it has come down. It is in a comfortable position. Inflation too is manageable though we would love to bring it down... are making efforts to bring it down. However look at other nations' inflation rates," she said, but at the same time added that the Government is "conscious of the fiscal deficit". (KB/IANS)

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