STORY HIGHLIGHTS


Indian rupee hit badly by US dollar

CNC
Added On September 14, 2018

 The strength of the U.S. dollar against major global currencies has increased pressure on emerging economies.

 
And India's rupee has become the worst hit currency in Asia, declining to a lifetime low.
 
In the morning trading session on Wednesday, the Indian rupee plunged to a fresh record low of 72.91 against U.S. dollar despite intervention by the Indian government to stop its free fall.
 
However, it recovered during the day and closed at 71.92.
 
According to media reports, this year the Indian rupee has depreciated by around 13 percent against the U.S. dollar, becoming the worst performing currency in Asia.
 
India's central bank has intervened by selling U.S. dollars in the Indian currency market, which has shown high volatility.
 
The intervention has led to a serious drop of India's foreign exchange reserve, dropping from 426 billion in mid-April, down to 403 billion US dollars in August.
 
It is expected to deplete further as the central bank continues to sell foreign currency.