- Indian investor Basant Maheshwari suspects a cartel pressuring the rupee against the dollar
- The rupee fell to a record low of 90.18 against the US dollar in Wednesday's trading session
- Forex traders cite importers and foreign investors increasing dollar demand as depreciation factors
Indian investor Basant Maheshwari suspects a cartel which is exerting pressure on the domestic currency. His comment came as Indian currency weakened beyond the crucial psychological mark of 90-per-US dollar.
The rupee slumped 30 paise to a new low of 90.18 against the US dollar so far in Wednesday's session.
Maheshwari said in a post on the X that there is a cartel who is trying to hammer the Indian currency against the US dollar. Otherwise, the rupee would have been in parity by now.
There is a cartel trying to hammer the rupee. Otherwise, we were supposed to be at parity (1:1) with the dollar by now !!!
His X post attracted mostly contrary and similar views from other X users..
Kuldeep Verma, a stock market trainer, replied multiple times to his post. He said that this is not a conspiracy; it is a transition phase of the nation who is rewriting its destiny.
According to Verma, a cartel can attack a currency but it cannot affect the will of India, which is rising. "Because no cartel in the world is stronger than the heartbeat of 140 crore Indians rising at the same time," he said in another tweet.
Robin Bakhan, who replied to Maheshwari's post, said that it is a foreign-funded propaganda. Anti-national forces are trying to manipulate the dollar-rupee exchange rate.
The Indian currency has been hitting record low for three session in a row on Wednesday. Dollar demands from importers, foreign portfolio investors, and importers are weighing on the Indian currency.
According to forex traders, the Reserve Bank of India might have loosened its grip on the domestic unit, which has allowed it to experience a runaway depreciation. Exporters also remained on the sidelines as they expect more correction in the Indian unit going forward.
Market participants are awaiting the outcomes of the Reserve Bank of India's Monetary Policy Committee, scheduled for release on Dec 5.
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