Indian Rupee Reaches Historic Low Against the US Dollar

The Indian rupee reached a historic low on Monday. The reason for this is concerns about an impending recession in the USA, which are fueling fears of capital outflows from foreign investors. The rupee opened trading at 83.78 against the US dollar, compared to the previous closing rate of 83.75, thereby slipping below the previous all-time low of 83.7525 recorded on Friday. A disappointing labor market report led to an increased sell-off in both the US and Asian stock markets. These developments are worrying investors in India and other emerging markets, as they fear potential capital outflows. A trader at a public bank in India remarked that the strong selling wave might prompt the Reserve Bank of India to allow an appreciation of the USD/INR exchange rate to 83.90.