Dollar vs Rupee: On Monday, the first trading day of the week, the rupee has reached its lowest level ever against the US dollar. Today, on May 18, the Indian Rupee has fallen against the US Dollar and reached its historical record low of $96.283 (All-Time Low).

During trading, the rupee briefly slipped to 96.18 per US dollar, which is about 0.2 percent less than its previous closing price. This fall also crossed its previous record low of 96.1350.

What is the connection between falling rupee and crude oil?

India imports about 85 percent of its crude oil requirement from other countries. India’s import expenses increase when the price of crude oil crosses $111 per barrel in the international markets. In such a situation, there is a huge need for dollars to make payments to Indian oil importers. Amidst the rush to buy dollars in the market, the value of rupee starts decreasing rapidly against the dollar.

Trump’s new warning also has an impact

Trump wrote on his social media platform Truth Social, “The clock is ticking for Iran.” It would be better if they move quickly towards an agreement, otherwise there will be no trace of them left. Time is very short.” After his latest warning, global investors are hesitant in taking risks. In such a situation, they are withdrawing their money from the Indian stock market and investing it in the US dollar which is considered as ‘safe haven’, due to which the pressure on the rupee is increasing further.

What will be the impact on the common man?

• If the rupee weakens, everything from studies abroad to medical treatment will become expensive. Now you will have to spend more dollars to pay tickets or tuition fees than before.
• If the rupee weakens, then mobiles, laptops, laptop parts, automobile components imported into India will become expensive.
• If the dollar becomes expensive, transportation costs within the country will increase. Due to this, everyday things will become expensive.

Also read:

Crude Oil: Crude oil reached its highest level in two weeks, will the prices of petrol and diesel increase further?