New Delhi4 minutes ago
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Today i.e. Friday (December 27), there was a big fall in the rupee against the dollar. After the day’s trading, it fell by 33 paise and closed at its lowest level of 85.59.
There was a fall of 55 paise during trading. On Thursday (December 26), it had closed at Rs 85.26 against the dollar.
This year the rupee has weakened by Rs 2.39 against the dollar. On January 1, 2024, the rupee was at the level of 83.20, which has come down to the level of Rs 85.59 at the end of the year i.e. today.
Due to the strengthening of the dollar and rising prices of crude oil
According to experts, this decline has come due to the strengthening of the dollar and rising prices of crude oil. Foreign currency traders have attributed the fall in the Indian rupee to the strong demand for the US dollar and the increase in crude oil prices due to geo-political uncertainties.
In fact, last week the US central bank, the Federal Reserve, cut interest rates twice in the year 2025. After this, the dollar index has strengthened, which increased by 0.38 percent to reach 107.75.
Import will become expensive due to fall in rupee
Fall in rupee means that import of goods is going to become expensive for India. Apart from this, traveling and studying abroad has also become expensive. Suppose, when the value of rupee was 50 against the dollar, Indian students in America could get 1 dollar for 50 rupees. Now for 1 dollar students will have to spend Rs 85.06. Due to this, everything from fees to accommodation, food and other things will become expensive.
How is the value of currency determined? If the value of any other currency decreases in comparison to the dollar, it is called falling, breaking, weakening of the currency. Currency Depreciation in English. Every country has foreign currency reserves with which it conducts international transactions. The effect of increase and decrease in foreign reserves is visible on the price of currency.
If the dollars in India’s foreign reserves are equal to the US rupee reserves, then the value of the rupee will remain stable. If our dollar decreases, the rupee will weaken; if it increases, the rupee will strengthen. This is called floating rate system.
