New Delhi4 days ago
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Rupee has reached its record all time low. It saw a fall of 11 paise against the US dollar and closed at an all-time low of Rs 84.09 per dollar. Earlier on August 8, 2024, the rupee had closed at its lowest level of 83.99 against the dollar.
According to news agency Royers, the reasons for this fall in the rupee include the recent increase in crude oil prices in the global market and the selling done by foreign investors in the Indian stock market. Apart from this, news of Israel’s war with Iran and Lebanon has also had a negative impact on the rupee.
Rupee reaches lowest level even in intraday The rupee hit an intra-day low of 84.11 against the dollar. According to a report by news agency Reuters, on Friday the rupee opened at Rs 83.98 against the dollar and at one time reached a low of 84.11. Market experts believe that the rupee may reach its lowest level of 84.25 in the coming days.
Importing will be expensive Fall in rupee means that import of goods is going to become expensive for India. Apart from this, traveling and studying abroad has also become expensive. Suppose, when the value of rupee was 50 against the dollar, Indian students in America could get 1 dollar for 50 rupees. Now for 1 dollar students will have to spend Rs 83.40. Due to this, everything from fees to accommodation, food and other things will become expensive.
How is the value of currency determined? If the value of any other currency decreases in comparison to the dollar, it is called falling, breaking, weakening of the currency. Currency Depreciation in English. Every country has foreign currency reserves with which it conducts international transactions. The effect of increase and decrease in foreign reserves is visible on the price of currency.
If the dollars in India’s foreign reserves are equal to the US rupee reserves, then the value of the rupee will remain stable. If our dollar decreases, the rupee will weaken; if it increases, the rupee will strengthen. This is called floating rate system.
