Rupees vs Dollar: Rupee reached record low, Indian currency fell at 80.86 per dollar

The rupee closed at its all-time low of 80.86 per dollar (tentative) with a major fall of 90 paise. Forex traders said investors were hesitant to take risks as the Federal Reserve hiked rates and increased geopolitical tensions in Ukraine.

The rupee closed at its all-time low of 80.86 per dollar (tentative) with a major fall of 90 paise.

Investors’ sentiments have been affected by a clear indication of the US central bank Federal Reserve raising interest rates and maintaining a tough stance further. Due to this, the rupee on Thursday closed down by 90 paise at its all-time low of 80.86 per dollar (tentative). Forex traders said investors were hesitant to take risks as the Federal Reserve hiked rates and increased geopolitical tensions in Ukraine.

At the same time, the strength of the US currency in foreign markets, fall in the domestic stock market and increase in crude oil prices are also affecting the rupee.

90 paise fall against previous closing price

The rupee opened at 80.27 in the interbank foreign exchange market. During the day’s trading, it fell further to reach an all-time low of 80.95. Finally it closed at 80.86, which shows a decline of 90 paise against the previous closing price. The Federal Reserve has increased interest rates by 0.75 percent. Forex traders say that now all the focus will be on the monetary policy of Bank of Japan and Bank of England.

The dollar index, which measures the strength of the dollar against the six major currencies, rose 0.38 per cent to 110.06. HDFC Securities Research Analyst Dilip Parmar said an aggressive stance by the Federal Reserve and further escalation of geopolitical tensions between Russia and Ukraine led to the rise in the dollar against major currencies. Like other Asian currencies, the rupee has also reached a record low.

Parmar said that even after the strengthening of the domestic economy, the current trend of depreciating rupee may continue. According to stock market data, foreign institutional investors sold shares worth Rs 461.04 crore on Wednesday.

What will be the effect on the common man?

Let us tell you that due to the weakening of the rupee, there are not only disadvantages but also some advantages. Good money is also available for goods going from India to foreign countries. A weak rupee is beneficial for those exporting goods or services from the country. Products like parts, tea, coffee, rice, spices, marine products, meat are exported from India and exporters of all these will benefit from the weakening of the rupee.

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The weakening of the rupee means that now the country will have to spend more money to buy the same amount of goods. Imported goods will be more expensive. This includes gold, crude oil, because the price of these commodities in the international market is fixed in dollars. Currently, crude oil prices are rising and the rupee is at a record low, so importing petrol and diesel will be expensive.