At 86.41, rupee hits all-time low against dollar

Along with stock market opening in red, the Indian rupee also fell by 37 paise against the dollar to reach an all-time low of 86.41 on Monday. A positive rise in dollar index and US Treasury yields has rupee plummeting in recent times, this time a record-low.

At the foreign exchange, the rupee fell to 86.41 after opening at 86.12 against the dollar today. On Friday, it closed at 86.04. Brent crude oil has also increased by 1.44% to $80.91 per barrel, which has also increased the inflationary pressure on the rupee.

The increasing weakness of the rupee can have adverse effects on the country’s economy. With rising crude prices and the rupee weakening against the dollar, petrol and diesel prices in India, a country that is 80% dependent on imports, may skyrocket again.

The burden on students going abroad to study may also increase. Moreover, auto parts and semiconductor chips will also become expensive due to imports, which will increase the prices of electronics and automobiles.

Exporters in sectors including textiles, pharma, IT, agriculture are likely to benefit from the strength of the dollar. The dollar is quoting at a record high after 2022. Due to which the earnings of service exports will also increase.

Experts believe that reasons behind the rupee decline include, but are not limited to, dollar index rising 0.22% to a two-year high of 109.72, US bond yield rising to 4.76%, rising crude oil prices, impact of global challenges, continues selling by foreign investors, and the reports indication sluggish GDP growth.

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