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What Factors Led to Indian Rupee Closing Law against US Dollar!
By: Tupaki Desk | 10 May 2022 10:44 AM GMT
As a big worry, the Indian rupee is getting weaker and weaker against the US dollar. Besides a few internal issues, the external issues and various developments across the globe are impacting the depreciation of the Indian rupee. After seeing another dip, the Indian rupee is now trading at Rs 77.41 against the dollar, which is the lowest.
The growing inflation rates in India are a big concern here. As a result, a few global companies have reportedly shifted their investments to other nations from India. As a precautionary measure, the RBI had increased the rates to tame the inflation rates. It might take some time for the rates to get effective.
Other issues which are not in our hands like the fall of currencies of Japan and other nations left a heavy toll on the Asian markets. As India is a developing county, no matter what happens in the world, India will have to face some or the other impact.
When the Indian currency is unable to take on the US dollar, the US dollar is going up day by day. The ongoing developments are working well for the United States. Due to the Russia-Ukraine war, many nations imposed sanctions on Russia and this is working well for the US as it has become a credible alternative.
The United States' main competitor China is struggling with the Covid impact and lockdowns to beat the virus. As the other nations are having a tough time, the United States is making the best out of it as the investors are showing interest in making investments in the superpower nation.
The impact on the downfall of the Indian rupee would result in the fuel prices as India is depending on the oil imports from other nations. With the Indian rupee getting weaker, the oil prices would get increase and the customers will have to face the heat of it.
With this, foreign education is going to cost a bomb for the students and the aspirants who want to go abroad to pursue higher education might have to think twice before packing their bags.
The growing inflation rates in India are a big concern here. As a result, a few global companies have reportedly shifted their investments to other nations from India. As a precautionary measure, the RBI had increased the rates to tame the inflation rates. It might take some time for the rates to get effective.
Other issues which are not in our hands like the fall of currencies of Japan and other nations left a heavy toll on the Asian markets. As India is a developing county, no matter what happens in the world, India will have to face some or the other impact.
When the Indian currency is unable to take on the US dollar, the US dollar is going up day by day. The ongoing developments are working well for the United States. Due to the Russia-Ukraine war, many nations imposed sanctions on Russia and this is working well for the US as it has become a credible alternative.
The United States' main competitor China is struggling with the Covid impact and lockdowns to beat the virus. As the other nations are having a tough time, the United States is making the best out of it as the investors are showing interest in making investments in the superpower nation.
The impact on the downfall of the Indian rupee would result in the fuel prices as India is depending on the oil imports from other nations. With the Indian rupee getting weaker, the oil prices would get increase and the customers will have to face the heat of it.
With this, foreign education is going to cost a bomb for the students and the aspirants who want to go abroad to pursue higher education might have to think twice before packing their bags.
