The Indian Rupee depreciated against the US dollar on Monday, weighed down by persistent worries regarding India’s expanding trade deficit. A surge in import demand, coupled with escalating global crude oil prices, has intensified pressure on the domestic currency.

Factors Influencing the Rupee’s Performance

• Trade Deficit: The widening gap between imports and exports remains a primary concern for investors.
• Crude Oil Prices: Rising global crude oil prices are increasing India’s import bill, further straining the Rupee.
• Global Market Sentiment: Overall risk appetite in global markets also influences the Rupee’s trajectory.

Expert Opinions

Analysts suggest that the Rupee’s movement will be closely tied to upcoming economic data releases and the Reserve Bank of India’s (RBI) monetary policy decisions. Market participants are advised to closely monitor these developments for potential shifts in the currency’s direction.

Furthermore, geopolitical factors and global economic trends could also play a significant role in shaping the Rupee’s future performance.