Essence
On Friday, the Indian rupee fell by eight paise to reach Rs 83.21 per dollar. On this, the statement of Union Finance Minister Nirmala Sitharaman has come. "The rupee is not falling, but the dollar is getting stronger," he said. The currency position of all other countries is the same against the dollar.
Expansion
The Indian rupee has once again registered a fall against the dollar. On Friday, the Indian rupee fell by eight paise to reach Rs 83.21 per dollar. Earlier on Thursday, the rupee had closed at 83.21 against the dollar. When the media asked questions to Union Finance Minister Nirmala Sitharaman on the falling level of rupee against the dollar, she gave a different statement. The Finance Minister said that the rupee is not falling, but the dollar is getting stronger. The currency position of all other countries is the same against the dollar.
Now the question is arising that why did Nirmala Sitharaman make such a statement? How much has the rupee depreciated in the last 22 years? What is the situation in other neighboring countries of India? Let's understand...
The rupee had first touched below the level of 80 for the first time in July this year. However, after the intervention of the Reserve Bank during the business then, the rupee was successful in making a comeback. After this, this happened for the first time in August, when the rupee had closed below the level of 80. In today's trade, the rupee has crossed the level of 81 for the first time.
Interest rates in America have been increasing continuously (US Rate Hike). This week, the US Central Bank Federal Reserve raised the interest rate by a massive 0.75 percent for the third time in a row. Currencies around the world are falling sharply against the dollar, showing signs of no slowdown in the rate hike. After getting the signal from the Federal Reserve, investors are withdrawing money from the markets around the world and are putting their investment in the US dollar for security. Due to this, the worst phase is going on for all other currencies including the Indian currency 'Rupee (INR)'. Talking about the rupee, its value (Indian Rupee Value) has come down very fast during the last few times. Rupee is continuously reaching new low level one after the other (Rupee All Time Low). Today, in the early trade on Friday, the rupee made a new record of falling and fell to a new all-time low.
Rupee crossed 81 for the first time
The rupee had first touched below the level of 80 for the first time in July this year. However, after the intervention of the Reserve Bank during the business then, the rupee was successful in making a comeback. After this, this happened for the first time in August, when the rupee had closed below the level of 80. In today's trade, the rupee has crossed the level of 81 for the first time. The rupee fell by 39 paise to 81.18 against the dollar in early trade today. Earlier on Thursday, the rupee had made a new all-time low. With the pace at which the rupee is depreciating, many economists believe that it may soon cross the 82 level against the dollar.
In this way the value of Rs.
If you look at the figures, so far this year the rupee has weakened by more than 7 percent. The value of rupee has been depreciating continuously against the US dollar. Due to the continuous strengthening of the dollar in the basket of major currencies, the position of the rupee has also weakened. Nearly two decades later, the value of the euro has declined against the US dollar, while the euro has consistently remained above the US dollar. Talking about the Indian rupee, since December 2014 till now, it has weakened by more than 25 percent against the US dollar. The rupee was at a level of 74.54 against the US dollar a year ago.
Dollar price rising due to these reasons
Actually, the changing situation has raised the risk of recession on the whole world. Inflation in America is at a 41-year high. To control this, the Federal Reserve is increasing interest rates rapidly. However, even after this, inflation is not coming under control. The US dollar is getting the benefit of increasing interest rates in America. America is officially in the grip of recession and many other big economies including Britain are on the verge of collapse. Fearing recession, foreign investors are withdrawing money from emerging markets and buying dollars as a safe investment. This phenomenon has strengthened the US dollar in an unexpected way. For this reason, for the first time after several decades, the value of the US dollar has exceeded the euro, while the euro used to be a more expensive currency than the US dollar. The US dollar has now reached its strongest level in nearly two decades.
What is the impact of weak rupee on you?
The weakening of the currency of any country has many effects. Let us understand this with examples that what is going to affect you due to weakening rupee? If any of your child is studying in any other country and you are sending money to him from India, in such a situation you are going to suffer. Since the US dollar has the status of a global currency and is getting stronger, the money you send in rupees will be of lesser value when converted into dollars. Because of this you will now have to send more money than before. On the other hand, if any of your relatives or relatives send you money from any other country, then you are going to benefit. Now you will get more money in the same old amount sent. If you do business then the effect will depend on whether your business is import based or export based. Exporters are going to benefit from a weak rupee, while importers will now have to pay more for ordering goods in the old quantity.