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.
US Shooting: Firing at Michigan State University in America, one killed; many people were injured
The incident of firing has come to the fore once again in America. According to the news agency R
The havoc of the cyclonic storm may have stopped in Gujarat, but the effect of the storm is being
AAP, which is embroiled in controversies over registration in Mukhyamantri Mahila Samman Yojana a
NASA's Space-X Crew-6 mission launched: 4 astronauts flew in Falcon 9 rocket, and will stay in International Space Station for 6 months
Successful launch of NASA's Space-X Crew-6 mission. The Space-X Falcon-9 rocket (Dragon Endeavor) wi
The two-day G20 Infrastructure Working Group (IWG) meeting will begin in Maharashtra's Pune on Mo
Vijay Nair sent on five-day CBI remand, arrested in excise policy case
A Delhi court has sent Vijay Nair to CBI remand for five days. CBI had sought seven days remand.
Dunki: Connection of 'Dunki' with 'Jawan', Shah Rukh Khan unveils his character in the film?
Shah Rukh Khan On Dunki Trailer: Shah Rukh Khan, who has given explosive films like 'Pathan and J
The distribution of free rations under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) in th
The Forest Department team caught seven accused red-handed for setting fire to reserved forests i
Arvind Kejriwal has put an end to the news of the alliance between the Aam Aadmi Party and Congre
