Rupee falls to historic low..!? Dollar crosses Rs.85..!?

The indian rupee has seen an unprecedented decline in value against the US dollar. One dollar has fallen to 85.08 rupees. The day before yesterday, the rupee was at 84.94 at the end of trading in the currency market. At the start of trading yesterday, the rupee fell to 85.03 rupees per dollar. Later, it fell to 85.08 at the end of trading. The US Federal Reserve, the central bank, cut the lending rate by a quarter of a percentage point. As a result, international investors turned their attention to the US dollar. As a result, the dollar rose; at the same time, the rupee also fell to a new high.The rupee value crossed Rs. 85 per dollar in a historic decline. The rupee value is facing a continuous decline not only due to the domestic economic situation; but also due to international factors. In the July-September quarter, the growth of the gross domestic product, GDP, decreased to 5.4%, while imports increased sharply, exports decreased, and the trade deficit increased. Due to this, foreign and domestic investments in the indian markets decreased, which led to the depreciation of the rupee.

Furthermore, the dollar's continued strengthening against international currencies is increasing the depreciation of the rupee. The US Federal Reserve's announcement of a rate cut had a knock-on effect not only on the rupee but also on the indian stock markets. As many investors, including foreign investors, sold shares in large quantities, the Sensex fell by more than 1,000 points and the Nifty by 300 points in early trade. Later, they recovered slightly and closed the trade.
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Sowmiya Sriram

20/12/2024 08:49 AM