Rupee fell due to strengthening of dollar, today fell by 11 paise to record low of 85.97. – ..

Dollar vs Rupee: The Indian rupee is failing to maintain its shine in the face of strong demand for the dollar. Today, after opening with a decline, the rupee has fallen by 11 paise and reached a record low of 85.97 against the dollar. Which closed at 85.86 yesterday. Today the rupee was trading in the range of 85.8638 to 85.9750 intra-day.

The US dollar and Treasury yields continue to hit new highs as the Federal Reserve continues to take a dovish stance on rate cuts. On the other hand, due to continuous selling by foreign investors from the Indian stock market and increase in crude oil prices, the demand for dollars from importers has increased.

RBI will have to take action

Foreign exchange experts say that the rupee has been continuously falling against the dollar in the foreign exchange market for the last 15 days. The sentiment has deteriorated due to the possibility of the country’s GDP growth rate being weak and the quarterly results of companies also being weak. To save the rupee from falling further, RBI will have to sell dollars heavily.

What will be the effect of weakening of rupee?

Due to weakening of rupee against dollar, imports will become expensive. Along with the increase in crude oil prices, the rupee has also declined. This will make buying crude expensive for India, which is 80 percent import dependent. Prices of petrol and diesel will increase. Apart from this, the cost of electronics equipment will also increase because import of semi-conductor chips will also become expensive. On the other hand, exporters will earn more in dollars. Profits of IT and pharma companies exporting services will increase. Earnings will increase.