Winning Bizness Desk
Mumbai. The rupee continues to depreciate against the US currency and has fallen to record levels. Now questions are being raised that how much more it will fall now from here. Recovering from the initial big fall on Monday, it fell four more paise and closed at an all-time low of 82.34 per dollar. The rupee has depreciated amid investors' risk-taking. According to insiders, the fall in the domestic stock markets and the strengthening of the dollar index has also affected investor sentiment. The rupee opened at 82.68 in the interbank foreign exchange market and went down to a low of 82.69 during trading. Meanwhile, the dollar index, which measures the strength of the dollar against the world's major six currencies, climbed 0.23 per cent to 113.05. At the same time, international oil standard Brent crude futures fell by 0.71 percent to $ 97.22 per barrel.
What are the factors for this depreciation?
In the end, the rupee recovered from a major fall and closed at 82.34 per dollar, falling by four paise against the previous closing price. Earlier on Friday, the rupee had declined by 13 paise to close at 82.30 per dollar. Dilip Parmar, Research Analyst, HDFC Securities, said that the rupee has recovered from the initial depreciation due to central bank intervention and capital inflows from companies. He said that the rupee has also got support from the softening of crude oil prices.
common man's life to get effected
Let us tell you that the impact of the depreciation of the rupee can be seen on the common man's life. This is also being seen in the form of inflation rate in recent times. The weakening of the rupee reduces the effect of any shortage in the imported commodity from the international market. In such a situation, it will take more time to get the benefit of the fall in crude oil because the depreciation of rupee in the midst of fall in prices will increase the import bill and this will continue to burden the exchequer. Right now there is a decline in crude oil in the foreign markets, but due to the weakening of the rupee, the common people are not getting the benefit of it.
BSE and NSE also fall
Apart from this, the BSE Sensex has fallen 200.18 points or 0.34 per cent to 57,991.11 points. Whereas, Nifty closed at 17,241.00, down 73.65 points. According to stock market data, Foreign Institutional Investors (FIIs) have been net sellers on Monday. He sold shares worth Rs 2,250.77 crore.