New Delhi: There was a record decline in the value of the Indian Rupee against the US dollar and the Rupee declined to 69.93 per USD. The decline of Re.1.10 on Monday was the highest in a single day, over the last 5 years.
As per analysts, this slide in the Indian Rupee and many other currencies has been triggered by the slide in the Turkish Lira, following the imposition of sanctions by the US against Turkey. A few days ago, Urjit Patel, the Governor of the Reserve Bank of India had warned that a currency war may emerge from the current trade war.
The effects of the strengthening of USD are seen all around the world. Many upheavals are seen especially because of these harsh measures being taken by the United States against China, European Union and Turkey. Currencies of many countries are declining against the USD and the Turkish Lira has seen the deepest decline. The Turkish Lira has declined by 12% on Thursday and 20% on Friday. Even on Monday, the Turkish currency declined by 8%.
The United States increased the tax on the Steel and Aluminium, imported from Turkey. President Trump had also made some aggressive statements against Turkey. Under this influence, the Turkish Lira saw a huge decline and this has also affected other currencies.
The Indian Rupee also could not escape these effects. The decline in the value of the Rupee, has become a matter of concern and looking at the current scenario, analysts have predicted that there is a possibility that the value of the Rupee may decline further.
Indian Commerce Minister, Suresh Prabhu had said in the ‘World Trade Conference’ that the world trade is faced with multiple major challenges, whereas, Urjit Patel, the Governor of Reserve Bank had warned that the trade war will culminate into a currency war. Patel had indicated that there will be many upheavals and the currency rates could decline. The Reserve Bank Governor had also said that this can affect the development in India.