US Reacts To Rupee Becoming the Reserve Currency: Global Financial Shift Sparks Washington Response
Dollar dominance faces unprecedented challenge as India's rupee enters the reserve currency arena—Washington scrambles to respond.
The Geopolitical Ripple Effect
Traditional financial powerhouses watch nervously as emerging markets pivot toward rupee-denominated assets. Treasury officials reportedly hold emergency meetings while Federal Reserve analysts crunch new volatility models.
Market Mechanics Upended
Cross-border settlement systems undergo silent transformation—banking infrastructure adapts to accommodate rupee liquidity pools. SWIFT alternatives gain traction as institutional players hedge against currency concentration risk.
Digital Asset Angle
Crypto markets mirror traditional finance's turmoil with increased rupee-stablecoin pairing volume. Blockchain settlement networks see record transaction flows between Mumbai and major financial hubs.
Wall Street's calculated surprise—because nothing disrupts established financial order like a currency that actually grows its economy instead of just printing more debt.
Source: Google
said Bessent in the TV interview. The rupee ishe said, accurately pointing out the development. The INR had fallen to a low of 88.27 on Monday but briefly surged on Tuesday, reaching 88.11. The damage to the local currency is done, and a rollback from here looks hard.
Rupee Cannot Become Reserve Currency: Might Fall To 90-91 Range Next
Several analysts predict that the INR could also fall to the 90 to 91 level by the end of 2025.said Aditi Gupta, Economist at Bank of Baroda, to Money Control. Therefore, the speculations that the rupee is emerging as a reserve currency have been laid to rest.
The latest data from TradingView shows that the INR has fallen 2.84% against the USD year-to-date. In a year alone, it has plunged 5% making it the biggest fall in the last three years for this period. With a track record this weak, there is little to no chance for the rupee to become the reserve currency. Other currencies like he euro and the pound have more chances to take the dollar’s place.
