Indian rupee on Tuesday reached a nine-month low of 75.4 against the US dollar.
Indian Rupee Rate: The Indian Rupee has reached a nine-month low of 75.4 against the US dollar on Tuesday. The Indian rupee (Indian currency) has seen a decline of about 4.2 percent in the last three weeks. Which is very worrying on the economic front.
Know why the rupee is falling?
On March 22, the rupee was trading at USD level from 72.38. On Tuesday (afternoon trading hours) slipped to the level of 75.42. This saw a decline of 4.2 percent in a matter of three weeks. On Tuesday, it lost 43 paise to a dollar and hit a nine-month low. The rupee has lost 193 paise in the last six days. According to the data, the rupee has been one of the biggest losers in the last three weeks. The biggest reason is the increasing cases of corona. Also, there is increasing concern over its impact on economic activities across the country.
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Weakness in the rupee affects the economy from the common man. The biggest effect is that it increases the cost of petrol and diesel. Weakness in the rupee will increase the price of imported goods. As against the dollar, the fall in the rupee will cost more for import of goods, which will increase the prices of goods coming from outside, and the cost of traveling or studying abroad will also be higher.
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India imports 80 percent of its petroleum needs. It is paid in foreign currency. Therefore, you will have to pay a higher price to buy it, and because of this, the price of petrol, diesel and other petroleum products will increase. On the other hand, exporters will benefit from the depreciation of the rupee. In particular, IT, Gems and Jewelery, Pharma and Textile sectors will be beneficial.