By Admin 
Indian Rupee Fall: There is a continuous decline in the Indian currency. On Friday’s trading day, the rupee closed at its lowest level ever against the US dollar. Rupee crossed 94 for the first time. During the day it fell to 94.84, while at the end of trading it closed at 94.81.
The effect of continuous selling by foreign investors and increasing tension in Iran is clearly visible on the rupee. Talking about the figures, the rupee has weakened by about 11 percent so far in this financial year. This condition of the Indian currency is considered to be the weakest compared to any financial year in the last decade. Let us know about this…
Reason for fall in rupee
1. Experts are attributing the fall in rupee to the changes in crude oil prices. Experts who have understanding of the subject say that the price of crude oil may remain above $ 100 per barrel for several weeks to come. Due to which the risk of inflation is going to increase in the country. Whose direct impact is visible on the rupee.
2. On the other hand, foreign investors are continuously staying away from the Indian domestic market. According to data, foreign investors have withdrawn about $13 billion from the Indian stock market in the last one month. Due to which the rupee is continuously falling.
3. The rupee is also under pressure due to tensions in the Middle East. The rupee has slipped by about 4 percent since the beginning of the war. Amidst the ongoing uncertain environment, this fall of the rupee has shaken the confidence of investors.
How will the rupee move in future?
According to various media reports, until the ongoing war between Iran and Israel stops, there is little hope of a major recovery in the rupee. However, the government is engaged in supporting the rupee from its level.
To keep the rising prices of petrol and diesel under control, the government has decided to reduce excise duty. Due to which common people can get some relief. However, this step may have an impact on the government treasury and there will be a possibility of reduction in the government’s revenue.
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