The Indian rupee has hit the all-time low against the dollar on Tuesday. After the market opened, the rupee slipped by 14 paise to reach the level of 77.69. A major reason for the continued weakness in the rupee is believed to be the continuous rise in crude oil prices and the prolongation of the Russia-Ukraine war.
Continued weakness in rupee: Since the last few days, there has been a period of weakness in the rupee. On Friday (14-05-2022) too, the rupee had fallen by 5 paise to 77.55, due to which it has seen a further decline today.
Weakness in rupee bad for the economy: Experts are not considering the continuous weakness in the rupee as good for the economy because more than 80 percent of crude oil is imported from abroad to meet its energy needs. In such a situation, when the prices of crude oil are increasing in the international market and the price of Indian Rupee is falling, then Indians will have to spend more for the same thing abroad than before.
On the fall of the rupee, experts say that the strengthening of the dollar, continuous increase in inflation, increase in the price of crude oil and Russia-Ukraine war are behind the fall of the rupee. Inflation is increasing continuously in America and the central bank (Federal Reserve Bank) has said to increase the interest rate, after which a large amount of foreign investors are withdrawing their money from India, due to which there is constant pressure on the Indian currency. .
Decline in foreign exchange reserves: With the value of rupee, the country’s foreign exchange reserves are also declining, according to the latest data, the country’s foreign exchange reserves have come down to more than $ 600 billion. According to the Reserve Bank, for the week ended April 29, foreign exchange reserves fell by $ 2.695 billion to $ 597.73 billion. This was the eighth consecutive week that the country’s forex reserves have declined.