Indian Rupee Plummets to New Low Against Dollar, Barclays Plc. Predicts Continued Decline

The Indian rupee has hit a new record low against the US dollar, falling past 84 due to geopolitical risks and outflows from local stocks. Barclays Plc.

suggests that the central bank may allow the rupee to decline further, with predictions from other experts ranging from 84.25 to 84.50 per dollar. Chief economist Upasna Bhardwaj anticipates that global headwinds and a slower pace of monetary easing in the US will continue to weigh on the rupee in the near future, leading to outflows from India towards China.

Despite the central bank's efforts to defend the currency at the 84 level, the rupee remains one of the most stable among emerging markets, with its performance tied to the strength of the US dollar. Governor Shaktikanta Das confirmed that the central bank is not managing the exchange rate, but rather allowing the rupee to depreciate naturally against the dollar.