Rupee Faces Volatility Amidst Global Economic Shifts

In 2024, the Indian rupee weakened against the US dollar due to global factors like geopolitical tensions and economic shifts. Although tumbled by 3% against the dollar, it showed resilience, gaining against the euro and yen. RBI's interventions aimed to stabilize the currency amid external economic pressures.

In 2024, the Indian rupee experienced a decline of 3% against the US dollar, triggered by global economic uncertainties and the dollar's strengthened position. Despite this downfall, it was less volatile compared to other emerging market currencies, maintaining some stability.

Central financial events including the Russia-Ukraine conflict and Middle Eastern tensions adversely influenced the rupee's performance. Additionally, decreased growth rates in China and significant foreign investor withdrawals notably impacted the currency's value against major global currencies.

Yet, due to robust intervention by the Reserve Bank of India involving non-deliverable forward (NDF) markets, the rupee managed to achieve gains against the euro and yen. Looking ahead, analysts are optimistic, forecasting a range between 82-87 per dollar for 2025, driven by potential policy actions and domestic economic recovery.