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State-run banks reportedly dumped billions of US dollars to stabilize the rupee. Reuters confirmed these actions, citing traders who observed deliberate moves to cap Experts opine that a weaker rupee raises the cost of imports and may result in higher inflation rates, the recent drop of the Indian rupee vs the US dollar has important The Indian rupee is far below in terms of valuation when compared to the USD. The INR fell to an all-time low against the USD, down by 83.28, spurred by rising NEW DELHI: Indian rupee may further depreciate to 82 to a dollar in the near term due to widening of trade deficit and expected aggressive rate hike by the US Fed later The Indian rupee is set to fall at open on Thursday, pegged back by risk aversion fuelled by the U.S. auto tariffs and the shift in the spot date to the next fiscal year The rupee may depreciate 8-10% against the US dollar during the Trump 2.0 regime, said a SBI research report, even as the local currency hit its all-time low on Monday.

Indian Rupee\'s Plunge: Is the US Dollar Headed for Trouble? Expert Warns

The recent drop of the Indian rupee vs the US dollar has important implications, sparking concerns about global economic stability and potentially spelling trouble for the US dollar. Experts opine that a weaker rupee raises the cost of imports and may result in higher inflation rates, the ripple effects of which could be felt worldwide. The Indian rupee is far below in terms of valuation when compared to the USD.

Rupee Hits Record Low: State Intervention and Future Outlook

The INR fell to an all-time low against the USD, reaching 83.28, spurred by rising global uncertainty. State-run banks reportedly dumped billions of US dollars to stabilize the rupee. Reuters confirmed these actions, citing traders who observed deliberate moves to cap the currency\'s decline. NEW DELHI: Indian rupee may further depreciate to 82 to a dollar in the near term due to widening of trade deficit and expected aggressive rate hike by the US Fed later.

Factors Contributing to Rupee\'s Weakness

The Indian rupee is set to fall at open on Thursday, pegged back by risk aversion fuelled by the U.S. auto tariffs and the shift in the spot date to the next fiscal year. Several factors are contributing to the rupee\'s vulnerability, including a widening trade deficit, aggressive interest rate hikes by the US Federal Reserve, and global economic uncertainties.

Long-Term Projections and Potential Impact on the US Dollar

The rupee may depreciate 8-10% against the US dollar during a hypothetical "Trump 2.0" regime, said a SBI research report, even as the local currency hit its all-time low on Monday. This potential for further depreciation raises questions about the long-term impact on the US dollar. While the immediate effects may be localized, sustained weakness in major emerging market currencies like the Indian rupee can create headwinds for the global economy and indirectly affect the US dollar\'s strength and stability. The situation warrants careful monitoring as the interplay between these currencies continues to evolve.

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