RUPEE'S DECLINE: A CLOSER EXAMINATION
- Credit Rating Agency in India
- Economy Overview
- RUPEE'S DECLINE: A CLOSER EXAMINATION
Multiple factors remain accountable for such decline, however, continued strengthening in the US dollar index after the US election results have contributed significant decline in emerging market currencies. During the period Oct~Dec’2024, the USD index have increased in the range of around 102~108. The USD index gained strongly after the US President-elect Donald Trump has announced a forthcoming ‘tariff-war’ with US’s major trading partners including India to strengthen and increase competitiveness of the US manufacturing. The US dollar will continue to remain a strong currency despite some feeble attempts to promote BRICS currency and Chinese renminbi. However, in an era of ‘de-globalisation’ and ‘protectionism’ such bilateral payments system is likely to prevail.