Winning Bizness Desk
Mumbai. Rupee has hit the record low against the dollar in the Narendra Modi regime. The rupee on Tuesday weakened by 60 paise to close at 77.50. The rupee weakened by 27 paise to open at 77.17, making a low of 77.52 in the day's trading. Earlier on Friday, it closed at 76.90. In the last two trading sessions, the rupee has lost 115 paise against the dollar.
What is the reason ?
Anuj Gupta, Vice President (Commodity & Currency), IIFL Securities said, "A strong USD, weak Asian currencies, inflation in oil prices among other things are the reasons for the weakness in rupee. In the coming days, the rupee may weaken to 79. There are many reasons for currency fluctuations. If the value of any other currency decreases in comparison to the dollar, then it is called falling, breaking, weakening of that currency. Every country has reserves of foreign exchange, from which it conducts international transactions. The decrease and increase of foreign exchange reserves determine the movement of the currency of that country.
... Then value of the rupee will remain stable
If the dollar in India's foreign exchange reserves is equal to the US rupee reserves, then the value of the rupee will remain stable. If the dollar decreases with us, the rupee will weaken, if it increases, the rupee will strengthen. However, the exporters will benefit, as the payment will be in dollars, which they will be able to earn more by converting them into rupees. This will benefit IT and pharma companies selling goods abroad.
