Rupee Crash: The Indian rupee is continuously weakening. This happened for the first time on Friday when the rupee crossed the level of 96 against the dollar. This means that now to buy 1 dollar one has to spend more rupees than before. This can have a direct impact on the country’s economy and the pockets of common people. Let us tell you that just yesterday i.e. on May 14, the rupee slipped from 95.74 to 95.86 in the Interbank Foreign Exchange market, which means there was a direct decline of 20 paise. Even before this, on May 13, after reaching 95.80, the rupee was seen at 95.66 per dollar. But now the situation has gone from bad to worse and the rupee has reached 96.

After all, why is the rupee becoming weak?

There has been a lot of movement in the international market for the last few days. Crude oil prices are going up due to increasing tension in the Middle East. India buys most of the oil it needs from abroad. In such a situation, when oil becomes expensive, India has to spend more dollars. Due to this, pressure on the rupee increases and its value starts falling.

At present, the biggest reasons for the fall in the rupee are considered to be rising oil prices and selling by foreign investors. Foreign investors are withdrawing money from the Indian market and buying dollars. Due to this the dollar is strengthening and the rupee is weakening. Apart from this, there is economic uncertainty all over the world. In such an environment, investors go towards safe investments, due to which the demand for US dollars increases further.

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What effect will it have on the common man?

The effect of weakening of rupee gradually reaches every person. First of all, petrol and diesel can become expensive. Because India buys oil from outside and the payment is in dollars. If oil becomes expensive then transportation costs will increase. Its effect can also be seen on vegetables, ration, milk and other everyday items. This means that there is a possibility of inflation increasing in the coming days. Apart from this, mobiles, laptops and other electronic goods can also become expensive because many of the materials used in them come from abroad.

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Impact on stock market also

The effect of fall in rupee was also seen on the stock market. There is an atmosphere of some concern among investors. However, IT companies can benefit from the weak rupee because their earnings are in dollars. But this situation is not considered very good for other sectors.

Will the dollar go to Rs 100?

Now the discussion has also started in the market whether the dollar can reach Rs 100 in the coming time. At present experts believe that it is difficult for this to happen immediately, but if the international situation worsens then the pressure may increase. However, RBI is continuously monitoring the situation. If necessary, the Reserve Bank can try to control the rupee by intervening in the market. At present, the biggest concern for the common people is that if the rupee continues to weaken, inflation may increase further.

Iran War Negatively Impacts the Rupee: The rupee lost its initial gains during trading on Monday and crossed the 95 level to fall at 95.22 against the US dollar. The domestic currency is under pressure due to rising crude oil prices, ongoing geopolitical tensions and strong dollar environment.

Although the rupee started with gains, it later lost its initial gains. In the interbank foreign exchange market, the rupee opened at 93.62 per dollar and then rose to 93.57 per dollar, showing an increase of 128 paise from the previous closing level.

Global market shaken due to Iran war

However, this gain could not be sustained and the rupee fell to an all-time low of 95.22 against the US currency in intraday trading. The ongoing war in Iran and increasing tension in the Middle East have shaken the global markets, whose direct impact is being seen on the Indian currency. Earlier on Friday, the rupee fell by 89 paise and closed at a record low of 94.85 per dollar.

What will be the impact on the common man?

The weakening of the rupee means that now everything coming from abroad will become expensive. This means that India will now have to pay more dollars for crude oil, due to which the prices of petrol, diesel and LPG (LPG) may increase in the coming days.

There will be a rise in the prices of everyday goods!

Not only this, the prices of mobile phones, laptops and other gadgets whose parts come from abroad may increase. Along with this, students who are studying abroad or those who are planning to travel abroad will now have to spend more money to buy dollars. Transportation of goods will also be expensive, due to which the prices of food items and everyday items may also rise.