Rupee hits all-time low of 95.22 against dollar for the first time, can it reach 100 per dollar?
New Delhi. The Indian rupee fell to its lowest ever level on Monday. Despite initial gains, the rupee declined because market fundamentals were not in favor of the rupee. The rupee fell below the 95-mark for the first time to hit 95.22 per dollar, down 0.3 per cent during the day. The rupee opened over 1 per cent higher after the Reserve Bank of India (RBI) decided to tighten limits on banks’ foreign exchange (FX) positions. However, the relief did not last long.
Read :- Record fall in rupee against dollar, fell by 41 paise to 93.94
The domestic currency is under pressure due to rising crude oil prices, ongoing geopolitical tensions and a strong dollar environment. Although the rupee started with gains, it later lost its initial gains. At the interbank foreign exchange market, the rupee opened at 93.62 per dollar and then rose to 93.57 per dollar, registering an increase of 128 paise from its previous close.
Global market shaken due to Iran war
However, this gain could not be sustained and the rupee fell to an all-time low of 95.22 against the American currency in intraday trade. The ongoing war in Iran and increasing tension in the Middle East have shaken the global markets, whose direct impact is being seen on the Indian currency. Earlier on Friday, the rupee fell by 89 paise and closed at a record low of 94.85 per dollar.
What will be the impact on the common man?
Read:- Wife made serious allegations against cricketer Amit Mishra, said- in-laws used to harass, pressure to commit suicide.
The weakening of the rupee means that now everything coming from abroad will become expensive. This means that now India will have to pay more dollars for crude oil, due to which the prices of petrol, diesel and LPG (LPG) may increase in the coming days.
There will be a rise in the prices of everyday goods
Not only this, mobile phones, laptops and other gadgets, whose parts come from abroad. Their prices may increase. With this, students who are studying abroad or those who are planning to travel abroad will now have to spend more money to buy dollars. Transportation of goods will also be expensive, due to which the prices of food items and everyday items may also rise.
Can the rupee fall to 100 per dollar?
The rupee crossing the 95 level is the result of several factors which were building up for the last several months. Brent crude above $105, FPI outflows of over $11 billion in March, and current account deficit continuing to widen.
Comments are closed.