- Indian rupee against dollar to trade in between the price range of Rs 83.25–83.75.
- Peter Brandt warns of the catastrophe of Tether.
The Indian rupee dived 0.2% to an all-time low of 83.6512 against the U.S. dollar, surpassing the early low of 83.5750 hit in April, according to the Bloomberg-compiled prices.
The current low was amid continuous foreign fund outflows in the equity market and the strengthening of the greenback. This decline is backed by the climbing crude oil prices overseas and several political and economic factors impacting the market.
David Forrester, a senior strategist at Credit Agricole CIB in Singapore, stated, “US dollar strength is dominating the market at the moment, and that is what is driving the rupee to a record low.”
Even though the rupee has shown a strong depreciation, According to the chief economist, Rajani Sainha, the Indian rupee will trade in the range of Rs 83.25–83.75 against the U.S. dollar in the remaining period of Q1 FY25. RBI interventions are expected to limit the volatility.
However, the Central Bank of India weakens the rupee with regulations and rules. The Indian rupee is still the best-performing currency in Asia after the Hong Kong dollar this year.
India and Crypto
Finance Minister Nirmala Sitharaman mentioned that cryptocurrency assets cannot be currencies, to a question during a session at the India Today Conclave that happened in March 2024.
Nirmala Sitharaman added:
“Currencies are to be issued with a fiat of the government or the central bank of the day. And it is still unregulated in India. That is why we thought it fit to raise it in the G20 forum, because as it is so technology-driven, it will have a bearing on cross-border payments.”
In Lok Sabha, the Cryptocurrency and Regulation of Official Digital Currency Bill, 2021, was introduced. The bill suggested the development of a digital currency issued by the RBI.
Meanwhile, the renowned market expert Peter Brandt suggested that the popular stablecoin Tether might be heading toward disaster. Which raises doubts regarding the future stability of both traditional and digital currencies.
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