On Monday, the first trading day of the week, the Indian currency rupee once again registered a big fall. As soon as the market started, it broke 28 paise against the dollar and reached the level of 78 for the first time. The rupee opened at the 78.11 level.
The rupee was at this level on Friday
In the last trading session of last week, the rupee had closed at 77.83 against the US dollar. The effect of the ever-increasing crude oil prices at the international level is also clearly visible on the rupee. Let us tell here that the weakness of the rupee has a direct effect on the economy of the country and the common man. Significantly, experts have predicted that it can slip to the level of 81.
Experts expressed this estimate
Amid the continuing fall in the rupee, a report quoted experts as saying that the rupee may hit an all-time low of 81 against the dollar in the coming days. That is, a further decline can be registered in it. However, in the meantime, he has expressed the possibility that after breaking this level, the rupee can rise again. Significantly, due to the breakdown of the rupee, a big impact is seen in many sectors. This will see an increase in the prices of everyday commodities from oil prices.
Effect of sell-off of foreign investors
Experts say that when there is turmoil in the international markets, investors turn towards the dollar. If the demand for the dollar increases, then the pressure on other currencies increases. Talking about the uncertainty around the world, due to the Corona epidemic and the ongoing war in Russia-Ukraine, there has been a supply interruption, which is going to create chaos around the world. People look for safe havens when there are times of uncertainty and the dollar is considered a haven. Selling by foreign investors affects the foreign exchange reserves and increases the demand for the dollar, while the demand for the rupee decreases.
The major impact of weakness in the rupee
Significantly, India is dependent on imports from other countries for gadgets including mobile laptops along with essential electric goods and machinery. Most mobiles and gadgets are imported from China and other East Asian cities and most of the business is done in dollars. If the rupee continues to depreciate like this, imports will become costlier in the country. Due to imports from abroad, their prices are sure to increase, which means inflation on mobiles and other gadgets will increase and you will have to spend more. Also, let us tell you that India buys 80 percent of its crude oil from abroad. Its payment is also done in dollars and due to the cost of dollars, the rupee will cost more. Due to this, freight will be expensive, and due to its effect, inflation will be hit further on everything needed.
Rapidly increasing heat will cause six times more deaths by the end of this century. The high tem
Rahul Gandhi told the police at the Ghazipur border- take me in your car but let me go to Sambhal.
Leader of Opposition in Lok Sabha Rahul Gandhi is going to Sambhal in UP. Meanwhile, the police h
Asia's richest businessman Gautam Adani is constantly trying to expand his business. With the exp
Smartphone use is increasing worldwide, especially among children between the ages of 9 and 19. A
After the arrest of ISKCON saint Chinmay Krishna Das, there have been continuous protests in Bang
Earthquake: Earth shook again in Himachal, tremors felt at many places; Kinnaur's Sangla center
Earthquake tremors have been felt in many other areas including Kinnaur in Himachal. The earthqua
Former Pakistan Prime Minister Imran Khan has accused former army chief Qamar Javed Bajwa of cons
Prime Minister Narendra Modi has said that by the year 2030, India will have achieved 500 GW (fiv
'Mamata Banerjee is no less than Kim Jong', BJP hits back at the statement on the PM's chair
There are continuous protests in Bengal over the atrocities that took place in Kolkata's RG Kar M
Chandrayaan-3: Indian Space Research Organization (ISRO) launched Chandrayaan-3 on 14 July. It wa
