The Indian rupee on Tuesday recorded a fresh low against the US Dollar as the greenback surged to a 20-year high globally and thus resulting in occurring of domestic losses. The Indian rupee on Tuesday morning was trading at as low as 79.61 against the US dollar.
The US dollar index, this morning was trading at 108.42, against 107.67 on Monday. Both the Indian Stock Markets BSE and NSE were trading at 0.3 percent and 0.4 percent lower, at 10:40 am IST, Tuesday.
What’s bringing tension to Dollar?
The dollar due to the energy crisis in Europe and the slowing of the economic cycle across the globe due to the Russia-Ukraine conflict is thus witnessing aggressive rate hikes.
Earlier this year, the dollar gained an increase of 13 percent on its index. The rupee on the other hand has depreciated to a low of 6.6 percent in the same period.
RBI while announcing this said, "in order to promote the growth of global trade with emphasis on exports from India and to support the increasing interest of the global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR."
The new initiative would be insisting Indian exporters and importers to use special Rupee Vostro Accounts to settle their payments in rupees, and banks will require RBI's approval to use the settlement system.
