New Delhi5 days ago
- Copy link
The rupee has hit a record low. It fell 11 paise against the US dollar to settle at a record low of 84.09 rupees per dollar. Earlier on August 8, 2024, the rupee closed at its lowest level of 83.99 against the US dollar.
According to Royers News Agency, the reasons for the rupee’s decline include the recent rise in crude oil prices in global markets and selling by foreign investors in Indian stock markets. Apart from this, news of Israel’s war with Iran and Lebanon also had a negative impact on the rupee.
Rupee hits lowest intraday level The rupee hit an intraday low of 84.11 against the US dollar. Reuters reported that the rupee opened at 83.98 rupees against the US dollar on Friday and once hit a low of 84.11 rupees. Market experts believe that the rupee may touch the lowest level of 84.25 in the coming days.
It would be very expensive to import it. A weaker rupee means imports will become more expensive in India. In addition to this, traveling and studying abroad has become expensive. Suppose when the exchange rate of rupee to dollar is 50, an Indian student in the United States can exchange 50 rupees for 1 dollar. Now, $1 will cost a student Rs 83.40. Therefore, everything from fees to accommodation, food, etc. will become expensive.
How is the value of money determined? If the value of any other currency falls relative to the US dollar, it is called a fall, a break, a weakness in that currency. Currency devaluation in English. Every country has foreign exchange reserves for international transactions. The impact of the increase or decrease in foreign exchange reserves on currency prices is obvious.
If the amount of US dollars in India’s foreign exchange reserves equals the US rupee reserves, then the value of the rupee will remain stable. If our dollar depreciates, the rupee will depreciate; if the dollar appreciates, the rupee will appreciate. This is called a floating rate regime.