How are the Indian Rupee and the US Dollar changing?

Recently, the Indian Rupee (INR) has recorded a sharp depreciation against the US Dollar (USD), reaching 84.71 INR/USD. This depreciation is mainly due to economic growth data falling short of expectations in India, making the possibility of the Reserve Bank of India (RBI) cutting interest rates in the future more likely. In particular, statements on monetary policy from international leaders have also impacted market sentiment, putting pressure on the INR and increasing the value of the USD.

In addition, the Indian government is working to internationalize the rupee, aiming to make it a strong currency that can replace the USD in international transactions. This organization has begun to establish mechanisms to allow trade transactions in rupees with several countries, which could put pressure on the USD in the future if successful.

This situation may continue to evolve complexly in the short term, and the slowing growth style of the Indian economy will affect the value of the rupee against the USD in the coming time.