The Rupee plunged below the 82 mark for the first time against the US dollar on 29 September. By 10 October, the Rupee further slid downhill to 82.75. The currency had been on a fast-paced downslide over the recent months along with its Asian peers. Various factors have contributed to currency instability when the world is staring at a looming economic uncertainty.
The hike and volatility in crude prices caused due to the war in Ukraine has significantly moved up India’s import costs, thereby creating more demand for the US dollar. The pent-up demand after the COVID-19 crisis has not been met with sufficient supplies. The zero-Covid strategy in China had greatly subdued its manufacturing potential, leaving the world short of adequate supplies.