Iran US Israel War: US President Donald Trump has announced a ceasefire for two weeks amid the war with Iran. This big decision of Trump has not only averted the sound of war, but has also given a new flight to the Indian rupee and the stock market. In early trade on Wednesday, the rupee strengthened by 50 paise to reach 92.56 against the US dollar. Yesterday it closed at 93.06.

The announcement of a two-week ceasefire between America and Iran is the biggest reason behind this strengthening of the rupee. Not only the rupee, there is a Diwali like atmosphere in the stock market today. Sensex has jumped by more than 2800 points and reached the level of 77 thousand 144, while Nifty has also seen an increase of more than 821 points.

There has been a huge fall in the prices of crude oil in the international market. Brent crude has fallen by more than 12% to around $95 per barrel. After Iran’s agreement to open the ‘Strait of Hormuz’, the fear of interruption in oil supply has ended, the direct effect of which has been seen in the fall in the dollar index. Although selling by foreign investors (FIIs) continued yesterday, news of global peace has increased risk appetite in the market.

What benefit does the general public get from the strengthening of the rupee?

When the Indian Rupee strengthens against the Dollar, it has a direct and positive impact on our pockets. Its main benefits are given below.

Relief in prices of petrol and diesel

India buys about 80% of its crude oil needs from abroad. Which is paid in dollars. In such a situation, when the rupee strengthens, oil import becomes cheaper. This increases the possibility of reduction in prices of petrol and diesel in future.

control on inflation

Due to low freight costs, prices of fruits, vegetables and everyday items come down. When fuel is cheap, the cost of transporting goods from one city to another reduces, due to which the retail inflation rate comes down.

Electronics and foreign gadgets will be cheaper

Parts of smartphones, laptops, and other electronic goods are mostly imported. Lower import costs create pressure on companies to reduce prices, due to which you can get cheaper mobiles and computers.

Foreign travel and education affordable

If your child is studying abroad or you are planning to travel abroad, then you will get direct benefit. Earlier you had to pay 93 rupees for 1 dollar, now you have to pay 92.56. That means you will save on every dollar.

Reduction in prices of edible oils

India imports palm oil and other edible oils in large quantities. Due to strengthening of rupee, the import cost of these oils will reduce and your kitchen budget will be balanced.

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