US dollar The Indian rupee has broken to close to 88 per dollar as compared to. The fall in the rupee is not taking the name of stopping. So far this year, the dollar has fallen by about 2 rupees. At the same time, so far, it has fallen by Rs 6. Let us tell you that the rupee fell 45 paise to a record low of Rs 87.95 per dollar in early trade on Monday amidst the strengthening of American currency in foreign markets and negative trend in domestic stock markets. The rupee opened at 87.94 per dollar in the Interbank Forex Exchange Market and slipped to an all -time low of 87.95 against the dollar in early trade, showing a decline of 45 paise in the previous closed price. The rupee closed at 87.50 against the US dollar on Friday. Meanwhile, the dollar index, showing the US dollar position against six major currencies, rose by 0.22 percent to 108.28.
Why did the rupee break today?
Forex traders reported that the dollar index reached 108 after US President Donald Trump’s announcement of imposing a new duty of 25 percent on all steel and aluminum imports. He said that this step has increased concerns about the global trade war, as China’s mutual fees have also come into force. Its impact was seen on the Indian rupee. The Indian rupee broke once again.
Crude oil also became expensive
International standard Brent crude rose 0.63 percent to $ 75.13 per barrel. According to the stock market data, foreign institutional investors (FIIs) were selling on Friday and purely sold shares worth Rs 470.39 crore.
Understand the math of increasing the price of currency and decreasing
The price of any currency in the foreign exchange market is determined based on the demand and supply of currency. This is the same as the price of another product in the market is determined. When the demand for a product increases while its supply remains stable, it increases the price of the product to limit the available supply. On the other hand, when the demand for a product falls while its supply remains stable, the vendors have to reduce the price of the product to attract sufficient buyers. The only difference between the commodity market and the foreign exchange market is that currencies are exchangeed with other currencies rather than objects in the foreign exchange market.
What will be the effect of breaking money?
The Indian economy, the general public and the business world will have an impact on the rupee breakdown. Due to weakness in rupee, rectanging from abroad will be expensive. Due to this, the price of essential goods may increase. That is, the burden of inflation will increase on you. For example, the importer had to pay Rs 83 for 1 dollar in October, but now he would have to spend Rs 86.61. India imports crude oil on a large scale. Importing crude oil will be expensive by the dollar firmly. This will increase trade deficit. Due to the weakening of the rupee, foreign investors withdraw money from the stock market. Its effect is still visible. Breaking money will increase the budget of traveling abroad or studying abroad. At the same time, India’s exporters benefit from the weakening of the rupee, because their products become cheaper in the foreign market.
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