India throws dollars on the market: Rupee in danger!

India throws dollars on the market: Rupee in danger!

The drama surrounding the American dollar never ends - especially not for India, which is hearing the dull sound of the falling rupee! BRICS member India seems to as watcher.guru reports, now rigorously following the U.S. dumping dollars in the foreign exchange market to protect the weakening rupee. The Indian rupee fell to a record low of 85.96 to start the year as the stronger U.S. Dollar made a lot of waves. The import-export sector is suffering while the Reserve Bank of India (RBI) is forced to respond with a harsh blow: it has ordered state-owned banks to throw millions of dollars into the market.

The reason for this maneuver is obvious: a weakening rupee could seriously increase inflation - a horror scenario for the Indian economy! The RBI is quietly pulling the strings in the background, although this approach is nothing new. India is repeatedly accused of dumping the dollar to support the rupee. But this time fear seems greater than ever as Trump's victory led to an unstoppable appreciation of the dollar, which climbed to 109.08 on the DXY index. A currency trader, whose identity will not be revealed, expressed concern about a possible drop in prices as state-owned banks massively withdraw U.S. Squeezing dollars out of every hole in the market. The doubts and unrest are grating on the nerves - the year 2025 begins with a dollar drama that could only develop its full impact in the coming period.