US dollar strengthens against six major currencies

The Economic Times

The Centre and the Reserve Bank of India (RBI) have been taking steps to attract capital inflows so the rupee’s depreciation against the dollar is smooth and gradual, government officials said. They pointed out that the dollar has strengthened against other currencies too, as global investors have become cautious, and the weakening of the rupee isn’t due to any problems with the Indian economy.

“The strength of the US dollar against the Indian rupee cannot be viewed as an isolated case”, said one official. “It is just part of the strength of the US dollar globally, against all currencies — developed or emerging.”

They added that the Dollar Index has gained 13% this year against six major currencies — euro, pound, yen, Swiss franc, Canadian dollar and Swedish krona.In contrast, the US currency has gained less against the Indian rupee, which has gone from 74.5 per dollar at the end of 2021 to 79.74 at the end of June, about a 7% depreciation.