Rupee at historic low of 83.37 against dollar

- A rosy economy, despite a weak dollar globally

- Asian currencies weakening against the dollar also affected the rupee

AHMEDABAD: Dollar weakness in the global market, the Indian currency rupee closed with a second consecutive weekly decline against the dollar despite an increase in foreign exchange reserves in India. With this, the rupee has closed at a historic low of 83.3675 against the dollar. On Thursday, the rupee closed at 83.3425 against the dollar. During trading in the interbank forex market, the rupee has been seen in a narrow range of 82.90 to 83.4 against the dollar for the past one month.

Despite every sign of strength and high growth in the Indian economy, the rupee is depreciating. The domestic currency is seen softening amid bright expectations of higher government tax revenue, corporate results and the country's economic growth in July-September than expected by the Reserve Bank.

In the global forex market, the dollar index, which determines the value of the American dollar against six major currencies of the world, was at 103.55, which points to the second consecutive weekly decline. Along with this, the dollar fell by 2.5 percent in the month of November, which indicates the biggest monthly decline in the last one year. Dt. On November 1, the dollar index was at 107.11, but now it is seen at 103.55.

After the Federal Reserve has continuously reduced interest rates to fight inflation in the United States, it is expected that preparations are being made to reduce interest rates, the dollar is seeing a continuous decline.

Asian currencies were also seen softening amid dollar weakness. Thailand's baht closed down 0.6 percent and Korean won 0.5 percent lower.

The rupee fell to 83.38 at one point after opening at 83.33 against the dollar in the interbank foreign exchange market on Friday. At the end of the session, it lost three paise to close at 83.37.

The rupee remained soft against the dollar as Asian currencies continued to soften against the dollar and importers in India continued to buy dollars. However, the decline in the rupee was not as sharp as crude oil prices were soft. Falling crude oil prices support the rupee for India as crude oil accounts for the largest share of its total imports.

Country's forex reserves hit 11-week high

According to Reserve Bank of India data, On November 17, the country's foreign exchange reserves hit an 11-week high of $595.40 billion. The week ending on that day saw an increase in forex reserves of $5.1 billion, the largest weekly increase in four months.