The Indian rupee weakened today on the speculation that the currency will continue its awful performance in the next year even as the nation’s central bank has taken steps to bolster the Indian currency.
The rupee was the worst performer among the Asian currencies and the currencies of the BRIC nations this year. India’s currency reached the record low of 54.305 per dollar on December 15. The weakness of the rupee prompted the Reserve Bank of India to act in order to support the nation’s currency, but Forex market participants were unconvinced by the efforts.
While the RBI has taken decisive steps to reduce speculation, these measures don’t necessarily address the underlying cause for the rupee’s weakness.
The returning risk appetite may support the rupee to some degree, but prospects remain dim.
USD/INR rose from 52.4850 to 52.7275, touching 52.8900 earlier, while EUR/INR climbed from 68.4771 to 68.8550 today as of 18:27 GMT after reaching the high of 69.1669 intraday.
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