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Economic Survey 2025: Why was the rupee weak last year, this reason stated in Economic Survey

The rupee fell seven paise to close at 86.62 per dollar on Thursday against the US dollar.

Photo: File The rupee fell seven paise to close at 86.62 per dollar on Thursday against the US dollar.

The Economic Survey 2024-25, released by Finance Minister Nirmala Sitharaman, stated that there was a decline in a strong US dollar and the uncertainty of US elections amidst gearful tension last year. This was the main reason behind the weakening of Indian currency. Let me tell you, due to the weakening of the rupee, India’s import bill has increased. Organizing goods from outside has become expensive. Holding the rupee can also be a challenging in the coming time.

What is the situation of rupee today

Economic Survey 2024-25 was traded in a limited range in early trade on Friday to break three paise to 86.65 per dollar. The rupee opened at 86.63 against the US currency in the interbank foreign currency exchange market and then slipped to 86.65, which shows a decline of three paise in the previous closed price. The rupee fell seven paise to close at 86.62 per dollar on Thursday. Weak rupee can make Indian shares less attractive for foreign investors. It is generally believed that falling currency is a sign of weak economy.

Fear of fall in rupee

Last year, the SBI Research report said that during the tenure of Trump 2.0, the rupee could fall by 8-10 percent against the US dollar. The report stated that the historic return of Donald J Trump as the US 47th President has given a new strength to markets and select asset classes, while now focuses on focus on focus on comprehensive economic impacts and supply chain restructuring. On 1 February, the announcement of the General Budget 2025 and the incidents related to their impact on the US trade charges and the dollar can be affected. The Reserve Bank of India has probably intervened to strengthen the local currency.

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