Rupee vs Dollar: Today on April 30, as soon as the market opened, the rupee once again fell below the level of 95 against the US dollar. Today the rupee has reached near 95.21 per dollar. Due to rising crude oil prices and huge demand for dollars, the rupee has reached its lowest level ever.

On Thursday, the rupee opened at 95.02 per dollar, which was 0.2 percent less than its previous closing price of 94.84 against the US dollar. Subsequently, it slipped to a new record low of 95.27 against the dollar, which was also below the previous record low of 95.22 per dollar set in March.

Why did the rupee kneel before the dollar?

• The main reason for the weakening of the currency today is the rise in oil prices. Brent crude futures are trading above the $122 per barrel mark, which is its highest level in more than three years. At the same time, the US benchmark, West Texas Intermediate is also trading at a high price around the level of $ 110 per barrel. Since India imports a large part of its oil requirement. In such a situation, oil becoming expensive means that now more dollars will be needed. In such a situation, oil companies will buy more and more dollars. This will increase the demand for dollars and weaken the rupee.

• Selling by foreign investors is also a big reason for this. Due to tension between America and Iran, global investors are withdrawing money from risky markets like India and investing it in the US dollar which is considered safe. This is also strengthening the dollar.

• The limited role of the Reserve Bank of India is also a major reason for this decline. Of course, RBI is intervening in foreign exchange reserves to manage the rupee, but its efforts are not bearing fruit in the face of global factors like continuously rising oil prices and strong dollar.

impact on india

• Due to the dollar becoming expensive, everything from studying abroad to traveling will become expensive because you will have to spend more money than before.
• Other imported electronics goods like smartphones, laptops will also become expensive.
• If the rupee weakens, costs for oil companies will increase further. Due to this, fuel prices are also likely to increase in the domestic market.