look news india
Rupee at all-time low against dollar: The Indian rupee is continuously falling against the dollar. Today it again reached a record low of 85.85. Currencies of other countries including the rupee have also collapsed due to strong demand for dollars in the non-deliverable forward market. Given the strength of the dollar, currency experts are predicting that the rupee will soon cross the level of 86 and fall to 86.20.
Rupee fell 3 percent against dollar
The rupee has fallen by 3 percent against the dollar in 2024. The rupee has been continuously falling against the dollar for the last seven years. There has been a big jump in this also in the last two years. The dollar index has strengthened due to the US Federal Reserve’s statement regarding interest rates.
rise in dollar
The Federal Reserve has announced interest rate cuts once in December and twice next year. Additionally, the dollar index has also strengthened due to the possibility of Trump announcing pro-inflationary decisions once he comes to power. The rupee weakened against the dollar after the country’s fiscal deficit hit a record high of $37.8 billion in November.
Less loss compared to other Asian currencies
In the current financial year, the rupee has declined by 1.2 percent against the dollar since April 2024. While the South Korean won and the Brazilian real declined by 2.2 percent and 12.7 percent respectively against the dollar. As the geopolitical crisis escalates, investors have turned to stronger currencies like the dollar. Today the Japanese Yen has fallen by 0.22 percent against the dollar.
Exporters will benefit
As the rupee weakens against the dollar, traders’ margins on exports will increase. IT and pharma companies earning in dollars will benefit the most. However, imports on the other hand will become costlier. The prices of petrol and diesel will increase in India, which is 80 percent dependent on crude oil.