US Treasury Secretary Dismisses Rupee as Potential Reserve Currency

US Treasury Secretary Scott Bessent has bluntly rejected speculation about the Indian rupee challenging the dollar's reserve currency status. "The rupee is falling, not rising," Bessent remarked during a Fox News interview, citing the currency's recent plunge to record lows against the USD. This skepticism comes as most Asian currencies continue their downward trajectory against the greenback.

Market data paints a grim picture for the INR, with TradingView reporting a 2.84% year-to-date decline and a 5% annual drop—the steepest three-year fall. Bank of Baroda economist Aditi Gupta predicts further deterioration, forecasting a potential 90-91 range by 2025. Such volatility effectively quashes any serious discussion of reserve currency status, especially when compared to more stable alternatives like the euro or pound.