Historical fall of the rupee! The biggest fall in 10 years, how will the performance of the rupee continue?

• Depreciation of Indian Rupee

• 10-year low

• What is causing the effect?

Indian currency is continuously depreciating. On Friday, the rupee is American of dollars The comparison closed at an all-time low. He crossed the 94 mark for the first time. It fell to 94.84 during the day and finally closed at 94.81. Not only this, but the entire effect of this is seen in the stock market as well. However of Indian rupees It is seen that the decline has been so much for the first time in the last 10 years. This is likely to increase inflation now.

Continued selling by foreign investors, withdrawals from the market by foreign investors and rising tensions in Iran are clearly weighing on the rupee. According to data, the rupee has weakened by around 11 percent so far this fiscal year. This is considered to be the biggest weakness of the Indian currency in over a decade. Let’s learn more about this.

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Reasons for Rupee Depreciation

1. According to experts, the fall in the rupee is due to changes in the price of crude oil. According to experts, crude oil prices may remain above $100 per barrel for several weeks, raising the risk of inflation in the country. This has a direct impact on the rupee.

2. On the other hand, foreign investors are increasingly moving away from the Indian domestic market. According to the data, foreign investors have withdrawn approximately $13 billion from the Indian stock market in the past one month, which has continued to depreciate the rupee.

3. Tensions in the Middle East are under pressure on the rupee. The rupee has depreciated by roughly 4 percent since the start of the war. This decline has shaken investor confidence during the current period of uncertainty.

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What will be the next move of rupee?

According to various media reports, the rupee is unlikely to appreciate significantly until the end of the war between Iran and Israel. However, the government is trying to support the rupee at its level. However, many experts are divided on how successful this effort can be. Currently, due to the US-Iran-Israel war, it is having repercussions all over the world and India is also seen to be affected by it.

To control the rising prices of petrol and diesel, the government has decided to reduce the excise duty. This may bring some relief to the common people. However, this decision may impact the government exchequer and reduce government revenue.