Rupee Weakens Against Dollar: India is paying a big price for the war between Russia and Ukraine. Rupee (Rupee) continues to fall against the dollar. On Monday, the rupee has fallen to its low level of Rs 77 against the dollar. The rupee on Monday plunged to a low of around $77 a dollar after the latest jump in crude oil on reports of imposition of sanctions on Russian oil by the US and its European allies. This was the fourth consecutive session when the currency has weakened. Rupee is trading at 76.96 per dollar in the domestic currency market.
What will be the effect of expensive dollar
- India is the second largest fuel consuming country in the world. 80 percent of which is met through imports. Government oil companies buy crude oil by paying in dollars. If the dollar becomes expensive and the rupee becomes cheaper, then they will have to pay more rupees to buy dollars. This will make imports expensive and the common consumers will not have to pay more for petrol and diesel.
- Lakhs of children from India are studying abroad whose parents are paying from fees to living expenses. His studies will become expensive. Because parents will have to buy dollars by paying more money. Due to which they will get the shock of inflation.
- Edible oil is already expensive, which is being met by imports. If the dollar becomes expensive, importing edible oil will be even more expensive.
- Traveling abroad will be expensive. Those who want to go abroad may have to spend more money to buy dollars, which will affect them due to inflation. RBI sold dollar
The currency is under pressure due to global tensions and a huge jump in crude oil prices. To save the rupee from weakening, RBI has worked to sell the dollar. To save the rupee from falling, RBI took a big decision last week and sold 2 billion dollars from its foreign exchange fund. So that the importing companies do not have to buy expensive dollars. But the price of crude oil has reached a 14-year high near $140 per barrel. Due to expensive crude oil, there is a possibility of increasing inflation in the country. Let us tell you that when RBI works to sell dollars, it buys rupees so that more cash available in the market can be reduced. With this, rising prices can be controlled.