September 29, 2022

Rupee falls again against dollar, know how it will affect you

The rupee closed down 21 paise at 79.73 (provisional) per dollar. The rupee opened at 79.53 against the dollar in the interbank foreign exchange market.

The rupee closed down 21 paise at 79.73 (provisional) per dollar.

The rupee fell 21 paise to 79.73 (provisional) to the dollar on Thursday in the interbank foreign exchange market on weak trends in domestic stock markets and strengthening of the dollar. The rupee opened at 79.53 against the dollar in the interbank foreign exchange market. After hovering in the range of 79.44 and 79.73 in the day’s trade, it finally closed down 21 paise at 79.73 against the dollar. The rupee closed at 79.52 per dollar in the previous trading session.

Meanwhile, the dollar index, which reflects the US dollar’s position against six major currencies, fell 0.09 percent to 109.56. Global oil benchmark Brent crude futures were down 0.96 percent at $93.20 a barrel. BSE’s 30-share Sensex closed down 412.96 points at 59,934.01.

According to provisional stock market data, foreign institutional investors (FIIs) sold shares worth Rs 1,397.51 crore on Wednesday.

what will happen to you

A depreciating rupee will reduce the impact of any shortage on imported goods from the international market. In such a scenario, it will take longer to reap the benefits of falling crude oil prices as the depreciation of the rupee amid falling prices will increase the import bill and continue to burden the exchequer. A better scenario for India would be when commodity prices in the international market fall, while the rupee also remains strong. If not, India will not get the full benefit of falling commodity prices.

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Depreciation of the rupee will have the biggest impact on imported goods or goods where imported materials are used. Mobile phones are the most demanded item in this category. India Cellular and Electronics Association (ICEA) president Pankaj Mohindru said a one percent devaluation of the rupee affects the mobile phone supply chain by 0.6 percent and is due to imported components. A decline of five percent affects overall profit by three percent In this case, the price will increase.

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