Rupee at All Time Low: Rupee again fell against dollar, fell by 41 paise to reach 93.94, know what is the reason?

Rupee at All Time Low: Once again a huge decline has been seen in the rupee. The rupee fell 41 paise to an all-time low of 93.94 against the US dollar in early trade on Monday. There is pressure on the Indian currency (rupee vs dollar) due to two reasons. First, the rise in global crude oil prices due to the ongoing conflict in West Asia, and second, the continued strengthening of the US dollar.

Forex traders said continued capital outflows and sharp decline in domestic stock markets during the morning session further weakened the local currency.

Rupee opened at 93.84, then fell further

In the inter-bank foreign exchange market, the rupee opened at 93.84 against the dollar and then slipped to a record low of 93.94 per dollar. This represents a decline of 41 paise from its previous closing price. On Friday, the rupee broke the level of 93 against the dollar for the first time. Ultimately it closed at an all-time low of 93.53 with a fall of 64 paise.

Meanwhile, the dollar index, which measures the strength of the US dollar against a basket of six major currencies, 99.66 Remained at, in which an increase of 0.02 percent was recorded.

The price of Brent crude, considered the international benchmark, stood at $ 112.90 per barrel, a decline of 0.60 percent. According to stock market data, foreign institutional investors (FIIs) were net sellers on Friday, selling shares worth Rs 5,518.39 crore.

3 main reasons for fall in rupee

According to Ajay Kedia, Senior Commodity Expert and MD of Kedia Advisory, there is a possibility of further decline in the rupee. He says that the currency market is currently going through a very turbulent phase, where many factors are simultaneously putting pressure on the rupee.

1 – Crude Oil Prices: Due to increasing tension in West Asia (Middle East), crude oil prices remain high in the international market. Brent crude is currently trading at $112.90 per barrel, due to which India’s import bill is increasing.

2 – Selling by foreign investors: On Friday, foreign institutional investors (FIIs) sold shares worth about ₹5,518.39 crore in the Indian stock market; This move had a direct impact on the health of the rupee.

3 – Strengthening dollar: The ‘Dollar Index’, which measures the US dollar’s strength against a basket of six major global currencies, rose to 99.66.

What effect will this have on India?

India’s import bill may increase due to the combination of weakening rupee and rising oil prices. If this situation continues for a long time, the rising cost of petrol, diesel and transportation will put an even heavier burden on the economic condition of the common man. Ultimately, it is sure to affect the common citizen.