The rupee has reached its record all-time low. It fell by 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 closed at its lowest level of 83.99 against the dollar. According to news agency Reuters, the reason for this fall in the rupee includes the recent increase in crude oil prices in the global market and the selling being done by foreign investors in the Indian stock market. Apart from this, the news of Israel’s war with Iran and Lebanon has also had a negative impact on the rupee. Rupee also reached its lowest level in intraday
The rupee reached a low of 84.11 in intra-day, which is the lowest level 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 the lowest level of 84.25 in the coming days. Imports will become expensive
The fall in the rupee means that imports of things will become expensive for India. Apart from this, travelling and studying abroad has also become expensive. Suppose when the value of the rupee was 50 against the dollar, then Indian students in America used to get 1 dollar for 50 rupees. Now students will have to spend 83.40 rupees for 1 dollar. This will make everything from fees to accommodation and food and other things expensive. How is the value of currency decided?
If the value of any other currency decreases in comparison to the dollar, then it is called the fall, breakdown, weakening of the currency. Currency depreciation in English. Every country has a foreign currency reserve, with which it does international transactions. The effect of the decrease and increase of foreign reserves is seen on the price of the currency. If the dollar in India’s foreign reserve is equal to the US rupee reserve, then the value of the rupee will remain stable. If the dollar decreases with us then the rupee will weaken, if it increases then the rupee will strengthen. This is called the floating rate system.
