new Delhi. Due to the record rise in crude oil amid the ongoing war in Russia-Ukraine, the rupee has reached an all-time low against the dollar. The rupee fell to 76.92 against the US currency dollar in early trade on Monday. At one time it had reached a low of 76.96. The Indian currency had closed at 76.16 against the dollar on Friday.
Ajay Kedia, director of Kedia Advisory, says that this big fall in the rupee will have an all-round effect on India. This will not only increase the pressure of inflation, but the trade and current account deficit of the country will also increase. The pace of economic growth will also be curbed. Overall, the entire Indian economy will be hit by it.
read this also- What is the math of tax on interest income, who gets relief, understand the full account
Rupee will fall now
CR Forex Advisory said in a note that the Indian stock market has fallen by more than 2 per cent due to the global sell-off. So far in March, foreign institutional investors have withdrawn more than Rs 16,800 crore from the Indian market. This trend will be seen in future also. If the price of crude oil continues to rise, then the rupee will fall against the dollar even further.
read this also- 7th Pay Commission: good news for central employees, Modi government can give 18 months together DA arrears
Dollar index crosses 99
Ajay Kedia says that the dollar index against six other currencies has risen sharply in crude oil and has crossed the level of 99. This is the highest level of the dollar index since May 2020. Besides, the 10-year bond yield has risen by 5 basis points to 6.86 per cent. He said that investors are investing in safe instruments like gold and silver. Hence, volatility in equity and rupee will continue.
Crude rise is a big blow for the world
VK Vijayakumar, Head of Investment Strategy, Geojit Financial Services, says that due to the Russo-Ukraine war, commodity prices have reached the sky. Crude reaching $ 128 is a big setback for the economies and stock markets around the world. This will not only increase inflation in the world but will also reduce the growth rate. In the context of India, the inflation rate will be higher than the estimate in the budget of 2022-23.
Tags: Dollar, Indian economy, inflation, Rupee weakness, Russia ukraine war
Read Article in हिन्दी