The Indian rupee has reached its all-time low. The rupee fell by around 0.1141 paise against the US dollar on Wednesday (November 6). After the day’s trading, it closed at Rs 84.2366 per dollar.
Since October 10, the rupee has seen a continuous decline, both small and large. Earlier yesterday, i.e. October 5, the rupee had closed at its lowest level of 84.1225 per dollar. On October 10, the Indian currency stood at the level of 83.9685 against the dollar. On October 17, it reached the level of 84.03 against the dollar.
Three reasons for the fall of the rupee
The dollar rose due to the results of the US presidential elections. Foreign investors sold Rs 16,358 crore in the Indian market. The Federal Reserve is expected to cut Dow Jones rates in the US market at the end of this week. points or 3%. Speed over.
There was an increase of 901 points on the stock market
Amid the voting and results of the US presidential election, the Sensex closed at 80,378 points on Wednesday, up 901 points (1.13%). Nifty also rose by 270 points (1.12%), it closed at the level of 24,484. At the same time, the BSE Smallcap closed at the level of 56,008 with a rise of 1,077 points (1.96%).
Out of 30 Sensex stocks, 25 rose and 5 fell. Out of 50 Nifty stocks, 41 rose and 9 fell. There was a rise in all sectoral indices of the NSE. The IT sector saw the highest increase of 4.05%.
Hit intraday low of 84.31
The rupee opened at 84.23 intraday. Which continued to trade between 84.15 and 84.31. On October 4, market experts had predicted that the rupee could hit an all-time low of 84.25 in the coming days.
Importing will be expensive The falling rupee means that importing goods will become costly for India. Apart from this, traveling and studying abroad has also become expensive. Suppose when the value of the rupee was 50 rupees against the dollar, Indian students in America could get 1 dollar for 50 rupees. Now, for 1 dollar, students will have to spend 84.23 rupees. Due to this, everything from fees to accommodation, food and other things will become expensive.
How is the value of a currency determined? If the value of another currency decreases in relation to the dollar, it is called a fall, breakout or weakening of the currency. Currency depreciation in English. Every country has foreign currency reserves with which it carries out international transactions. The effect of the increase and decrease in foreign exchange reserves is visible on the price of the currency.
If the dollars in India’s foreign exchange reserves are equal to the US rupee reserves, then the value of the rupee will remain stable. If our dollar declines, the rupee will weaken; if it increases, the rupee will strengthen. This is called the floating rate system.
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Sensex closed at 80,378 with a rise of 901 points: Nifty also gained 270 points, BSE Smallcap rose by 1,077 points.
Amid the voting and results of the US presidential election, the Sensex closed at 80,378 today, i.e. November 6, with a rise of 901 points. Nifty also gained 270 points and closed at 24,484 level.