The value of Indian rupee is continuously falling. This week also proved to be very bad in terms of rupee. The value of rupee declined on most days during the week and now its value has reached a new record low.
This week there was such a decline
According to market data, on Friday the rupee closed at Rs 83.7275 against the dollar with a slight fall of about 3 paise. That means now the value of one US dollar is equal to 83.7275 Indian rupees. This is the lowest ever level of the Indian rupee against the dollar. The rupee declined by 0.1 per cent during the entire week and was in loss on 4 out of 5 days of the week.
RBI’s intervention is insufficient
Market experts say that the rupee is in this condition when a lot of dollars are being pumped into the market to support it. RBI does not want to let the rupee go below 83.72 against the dollar. For that, the Central Bank intervened in the spot market and ensured that the rupee does not fall too much. However, even after that the rupee made a new low record.
Effect of increase in crude oil prices
In fact, there are many pressures on the rupee right now. First of all, due to the rise in crude oil prices, pressure on the rupee has increased. On Friday, crude oil strengthened in the international market and reached near $ 82 per barrel. The rise in crude oil prices means that India’s trade deficit will increase. Due to this fear, there is pressure on the rupee. Due to increase in crude oil prices, Indian oil importers are in need of more dollars. Due to this the rupee is also becoming weaker.
Bond yield also has an impact
Bond yield also affects the value of rupee. On Friday, the yield of 10-year benchmark Government of India bonds fell by 2 basis points to 6.94 percent. However, the value of rupee is expected to stabilize in the coming days. The budget shows that the fiscal deficit of the government may remain low, which may provide relief to the market.
