The rupee continues to weaken against the dollar due to challenging conditions in the global market. Its value has touched the 97 mark; during Wednesday’s trading, it reached a level of 97.151. Earlier in the day, the rupee had slipped to the 96.83 level. Consequently, it has become the worst-performing currency in Asia. By the close of trading, the rupee stood at 96.78, marking a five-month low. Previously, the lowest level recorded was 96.98.
The Reserve Bank has been making efforts over the past two weeks to stem the rupee’s decline, as breaching the 97 mark would see it hit a new record low. Taking market conditions into account, the Reserve Bank has raised its repo rate by 0.25%. There is a possibility that the central bank will further increase the repo rate in the near future. Due to the precarious global market situation, the exchange value of the rupee will remain under pressure. Jatin Trivedi, a research analyst at LKP Securities, stated that the rupee’s value against the dollar could touch the 96.45 to 97.25 range.
