Historical fall in rupee, Indian currency slips below 83 against dollar for the first time
Rupee At Record Low: The declining trend in the rupee continues. Today the Indian rupee slipped below 83 for the first time against the dollar. By the close of the currency market today, the rupee weakened by 66 paise against the dollar.
The depreciation of the Indian rupee against the dollar continues. The rupee recorded a historic fall today against the dollar. For the first time, the rupee slipped below 83 against the dollar. According to experts, the rise in US bond rates is attributed to the fall in the rupee. At the close of the currency market on Wednesday, the rupee closed at Rs 83.02, down 66 paise, or 0.8 percent. This is the lowest level of the rupee against the dollar.
If the rupee continues to weaken against the dollar, imports may become costlier. As a result, the current account deficit is likely to widen. In the first quarter of the current fiscal year 2022-23, April-June, the current account deficit has widened to $23.9 billion, which is 2.8 percent of GDP. If understood in colloquial language, the weakening of the rupee against the dollar leads to an increase in the price of crude oil and other essential products imported from abroad, due to which the companies have to increase the price under compulsion. In this case, inflation increases further.
Here the dollar is being told to be strong behind the weakening of the rupee against the dollar. Recently, a statement of Finance Minister Nirmala Sitharaman came out, in which she said that the rupee is not weakening, the dollar is getting stronger. This statement by the Finance Minister caused a lot of contempt. However, the opinion of experts is also the same.
The yield on the 10-year Government of India bonds has increased to 7.4510 percent. According to experts, RBI intervened at Rs 82.40 and tried to handle the rupee from falling. But it is believed that if the RBI does not intervene, then the trend of the falling rupee may continue. In the opinion of experts, by March 2023, the rupee can reach the level of 85. Due to this, the possibility of a further increase in inflation in the coming days cannot be ruled out.