New Delhi3 hours ago
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Rupee has reached its record all time low. On Thursday (June 20), it saw a fall of 17 paise against the US dollar and closed at an all-time low of Rs 83.62 per dollar. Earlier on April 16, 2024, the rupee had closed at its lowest level of 83.61 against the dollar.
The rupee opened at 83.43 in the exchange market on Thursday and touched the day’s high of 83.42. After this, during the session the rupee also hit an all-time low of 83.68 against the dollar and finally it closed at 83.61 per dollar with a fall of 17 paise compared to the previous close. On Wednesday, the rupee had closed at 83.44 against the US dollar with a fall of one paise.
Increasing pressure on rupee due to increasing demand for dollar
According to research analyst Anuj Chaudhary, the rupee has declined due to the strength of the US dollar. At 5.30 in the evening the dollar index was trading above 105. According to experts, the rupee has come under pressure due to dollar outflow. Demand for dollars from local importers has also strengthened.
Apart from this, crude oil prices have started increasing again amid the geopolitical crisis. This is increasing pressure on the Indian rupee. At the same time, factors like increasing MSP for 14 Kharif crops by the Union Cabinet, increasing demand for dollar, rise in crude oil are strengthening the dollar and weakening the rupee.
Importing will be expensive
Fall in rupee means that import of goods is going to become expensive for India. Apart from this, traveling and studying abroad has also become expensive. Suppose, when the value of rupee was 50 against the dollar, Indian students in America could get 1 dollar for 50 rupees. Now for 1 dollar students will have to spend Rs 83.40. Due to this, everything from fees to accommodation, food and other things will become expensive.
How is the value of currency determined?
If the value of any other currency decreases in comparison to the dollar, it is called falling, breaking, weakening of the currency. Currency Depreciation in English. Every country has foreign currency reserves with which it conducts international transactions. The effect of increase and decrease in foreign reserves is visible on the price of currency.
If the dollars in India’s foreign reserves are equal to the US rupee reserves, then the value of the rupee will remain stable. If our dollar decreases, the rupee will weaken; if it increases, the rupee will strengthen. This is called floating rate system.
