Rupee hits fresh record low, opens 25 paisa lower at 81.09/$ vs yesterday’s close of 80.86/$.
Why is the Indian rupee declining against the dollar?
According to market experts, the US central bank, the Federal Reserve, has given clear signals to raise interest rates and maintain a tight stance further, which has affected investor sentiment. Due to this, currency is being seen around the world. At the same time, due to the rising tension between Russia-Ukraine, investors are avoiding taking risks, due to which the US currency is getting stronger and the currency of other countries including India is seeing a fall.
RBI will issue monetary policy next week
Advisors at CR Forex said that the RBI will issue monetary policy next week, which will be interesting to see. He said that the RBI could not stop the ongoing fall in the Indian rupee as the banking system is currently in deficit. In such a situation, RBI’s intervention will lead to a hike in interest rates, which may worsen the condition of the banking system.
The decline in the stock market continues
The stock market is also seeing a decline in the last trading day of this week. The Bombay Stock Exchange (BSE) is currently seeing a decline of 614.8 points with 1.04%. At the same time, the National Stock Exchange (NSE) is seeing a decline of 202.05 points with 1.15%. This fall is at 11:15 in the morning, the market is open now, so the volatility continues.
How will the fall in the Indian rupee affect the common man?
After the fall in the rupee, more money has to be spent on importing the same goods from abroad, due to which the imported goods become more expensive. Due to this inflation increases in the country. At the same time, the price of crude oil in the international market is fixed in dollars, due to which the prices of oil in the country also increase.
