No let-up in Rupee depreciation; touches another lifetime low

Continuing with the depreciation, Rupee slipped further from the past week's low and hit another lifetime low on Monday morning. This consistent depreciation follows the ongoing strengthening of the US dollar index for a two-decade, on hopes that demand for safe-haven currency such as the dollar would pick up. This morning, it crossed 81.50 against the US dollar. On Friday, it closed at 81.25. Notably, last Thursday's depreciation was the biggest single-day fall for the rupee since February 24. The latest monetary policy tightening by the US Federal Reserve also lent support to the dollar, thereby weakening other major currencies globally, including India's rupee. Consumer inflation in the US though declined marginally in August to 8.3 per cent from 8.5 per cent in July but is way above the 2 per cent goal.Meanwhile, India's forex reserves are at a two-year low. The reserves have dropped by almost USD 80 billion since the escalation of the Russia-Ukraine tensions into war earlier this year.