Indian Rupee Crash News Marathi : Today, April 30, as soon as the market opens Rupee It once again fell below the 95 level against the US dollar. Today, the rupee touched close to 95.21 per dollar. Rising crude oil prices and strong demand for the dollar have pushed the rupee to an all-time low.
On Thursday, the rupee opened at 95.02 per dollar, down 0.2% from its previous close of 94.84 against the US dollar. Subsequently, it fell to a fresh record low of 95.27 against the dollar, which was well below the previous record low of 95.22 per dollar recorded in March.
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Why did the rupee surrender to the dollar?
The weakening of the currency today is mainly due to the rise in oil prices. Brent crude futures are trading above $122 a barrel, the highest level in more than three years. Meanwhile, the US benchmark, West Texas Intermediate, is also trading higher at around $110 per barrel. Since India imports a large portion of its oil requirements, rising oil prices increase the need for dollars. As a result, oil companies will buy more dollars, which will increase demand for dollars and weaken the rupee.
Selling by foreign investors is also a major reason for this. Due to tensions between the US and Iran, global investors are pulling money out of risky markets like India and investing in the safe-haven US dollar. This is strengthening the dollar.
The limited role of the Reserve Bank of India is also a major reason for this decline. Although the RBI has been intervening in foreign exchange reserves to support the rupee, its efforts are failing in the face of global factors such as rising oil prices and a strong dollar.
Implications for India
A rising dollar will make everything from studying abroad to traveling more expensive, as you’ll have more money to spend than ever before. Other imported electronic goods like smartphones and laptops will also become expensive. A weaker rupee will further increase costs for oil companies. This is also likely to increase fuel prices in the domestic market.
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