Business

Dollar close to 80 rupees

Mumbai The depreciation of the rupee against the dollar continues. On Thursday, the rupee declined by nine paise against the dollar, after which the value of one dollar reached Rs 79.90. At one point in the day’s trading, the price of one dollar had gone up to Rs 79.92. Later it was slightly improved. The depreciation of the rupee against the dollar has already touched historic levels. Now the daily decline is forming a new low. Never before had the rupee depreciated so much.

However, in Thursday’s trade, the rupee opened strongly in the foreign exchange market. The price of one dollar in the morning was Rs 79.72. That is, it was an improvement of nine paise. It reached Rs 79.71 in a short time trading. But later it fell sharply and it closed at Rs 79.90, down nine paise from a day earlier. According to market experts, there was a tremendous rise in the value of the dollar against the world’s top six currencies in early trade in European countries. Because of this, the rupee fell sharply after the initial rise in India.

It is being speculated that very soon the price of the dollar will exceed Rs 80 and it can go up to Rs 81 in the business of this month itself. The reason for this is that America has the highest inflation in the last 40 years, to control which interest rates can be increased. In the month of June, the rate of inflation in America reached 9.1. To prevent this, the US Federal Reserve can increase the interest rate. An increase of 0.75 to 1 percent is expected. If this happens, the dollar will strengthen further.

Keep in mind that due to the increase in the interest rate in America, the investment in the market around the world, including India, comes out and goes back to America. Anyway, for some time now, institutional foreign investors have been withdrawing money from the Indian market. Due to this there is also turmoil in the stock market. Due to the payment of oil imports in dollars, pressure on India’s foreign exchange reserves is also increasing.

Shivam Bangwal

Shivam Bangwal is an Indian based entrepreneur who is a tech, travel and coding enthusiast with a post graduation degree on Master's of Computer Applications. He is a founder of Youthistaan, People News Chronicle, Hitchhike TV, Branding Panther and many more.
Back to top button