Afghanistan’s Foreign Minister Aamir Khan Muttaki is currently on a tour of India, which is a topic of discussion at present. This visit clearly shows that relations between India and Afghanistan are good. After America’s departure in the year 2021, Taliban captured Afghanistan, after which they formed their government there. However, India has not yet recognized them. Despite this, both the countries insist on good relations with each other. Meanwhile, if we talk about Afghan currency, it is surprising. Afghanistan is a poor country. Despite this, the currency here is more valuable than the Indian rupee. According to the report of XE.com, the value of 1 Afghani rupee is equal to 1 rupee 33 paise in India, whereas the value of 1 rupee in Afghanistan is only 0.75 paise.

It is shocking that how can the currency become so strong in Afghanistan under Taliban control, where unemployment, illiteracy and poverty are at their peak. Actually, there are many interesting reasons behind this. The Taliban government has banned the use of US dollars and Pakistani rupees. Due to this, the demand for foreign currency within the country has reduced and the price of Afghan rupee remains stable.

Value of Rs 1 lakh in Afghanistan
For example, if an Indian earns 1 lakh rupees in Afghanistan, then after coming to India its value will be 1 lakh 32 thousand rupees, which is 32 thousand more than the 1 lakh earned in India. This gap of 32 thousand is quite big in itself. However, if we talk about Pakistan and Bangladesh, the value of the currency there is much less than that of India. The value of 1 rupee in Pakistan is 3 rupees 17 paise, while the value of 1 rupee in Bangladesh is 1 rupee 37 paise.

Read this also: ‘200 percent tariff…’ Trump is not stopping, now tells shocking lie on India-Pakistan ceasefire

Rupee vs dollar: The Indian rupee weakened against the US dollar on Monday due to increasing concerns about American tariffs and frequent withdrawal of foreign capital from the Indian market. On the first day of the week, the rupee fell 11 paise to 87.29 per dollar in early trade.

According to foreign exchange traders, the weak trend of US dollar and softening in crude oil prices definitely supported the rupee to some extent. But despite this, the rupee opened at 87.21 compared to the US dollar in the interbank foreign exchange market, which was 11 paise weaker than a day earlier.

Major reasons for rupee fall

Uncertainty for American tariffs: The possibility of increasing the import duty (tariff) by the US has affected the perception of global investors, increasing pressure on the currency of emerging markets.

FII selling: Foreign institutional investors (FII) on Friday made a net selling of shares worth ₹ 3,366.40 crore, which affected the domestic currency.

Increase in dollar demand: Dollar demand remained in the Interbank Forex Market, which weakened the rupee.

Some auxiliary factor

Dollar index falls: The dollar index, depicting US dollar strength against major currencies, fell 0.40% to 98.74.

Softening of crude oil prices: According to Brent Crunt International Standard, 0.26% fell to $ 69.49 per barrel, which can provide relief to the oil importing country like India.

Domestic stock market rose: BSE Sensex rose 262.90 points to 80,861.80 in early trade, while NSE Nifty gained 98.50 points to 24,663.85.

Now look at RBI’s decision

The market is now looking at the next monetary policy of the Reserve Bank of India (RBI) to bring stability in the rupee and attract foreign investment. If the RBI intervenes a big or changes the rates, then it will directly affect the direction of the rupee.