Rupee Dollar Rate: On Tuesday, there has been a slight recovery in the rupee against the dollar. Rupee has closed at 77.33 against a dollar today. The rupee opened at 77.29 in the morning. On Monday, the rupee had closed at 77.47 against a dollar.
Rupee may continue to fall
According to many experts, the rupee may weaken against a dollar and fall to 80 rupees per dollar in the coming days. In fact, in view of rising inflation in America, if the Federal Reserve Bank decides to increase interest rates, then investors can withdraw money from emerging markets like India, due to which the rupee may weaken further. Rupee is currently falling due to global reasons as well as domestic reasons. Not only is the fall in the stock markets behind it, the continued selling by foreign funds amid the global trend of increasing interest rates has also put pressure on the rupee. Due to the cost of crude oil and the strengthening of the dollar against other currencies, the rupee is seen in the range of weakness.
What will be the effect of expensive dollar
1. India is the second largest fuel consuming country in the world. Which 80 percent is met through imports. Government oil companies (Oil Marketing Companies) buy crude oil by paying in dollars. If the dollar becomes expensive against the rupee and the rupee depreciates, then state-owned oil companies will have to pay more dollars to buy crude. This will make imports expensive and common consumers will have to pay higher prices for petrol and diesel.
2. Lakhs of children from India are studying abroad whose parents are paying from fees to living expenses. Their studies abroad will become expensive. Because parents will have to buy dollars by paying more money so that they can pay the fees. Due to which they will get the shock of inflation. From the month of June to August, due to the start of foreign admissions, the demand for dollars increases anyway. Parents will have to bear the brunt of the expensive dollar.
3. Edible oil is already expensive, which is being met by imports. If the dollar becomes expensive, importing edible oil will be even more expensive. To import edible oil, more foreign exchange will have to be spent. Due to which common people will have to pay more price for palm oil to other edible oil.
Let’s see, how the strong dollar benefits the economy
1. Higher Return on Remittance – A large number of Indians work in Europe or Gulf countries. There are a large number of Indians living in America who earn in dollars and send their earnings to the country. India is the country with the highest remittance in the world. In the year 2021, $ 87 billion was received in India through remittance. Which is estimated to increase to 90 billion in 2022. More than 20 percent of the remittance in India comes from America. When Indians send these remittances to their countries in the form of dollars, not only does the foreign exchange reserves increase, as well as from these money the government gets money to run its welfare schemes. And those who send remittance, they get more return by exchanging dollars in their country to the currency of their country.
2. IT Industry – The country’s IT services industry gets a big benefit from the strengthening of the dollar. India’s biggest IT companies like TCS, Infosys, Wipro, Tech Mahindra, HCL get the highest earnings from providing IT services abroad. These companies are paid in dollars. When these indigenous IT companies bring their country’s earnings in dollars, they get tremendous benefit from the weakness in the rupee and the strength in the dollar. So due to the strength of the dollar, the income of these companies by providing services abroad also increases.
3. Benefit to Exporters Exporters get a big advantage of the strengthening of the dollar. When exporters sell a product to other countries, they are paid in dollar form. A stronger dollar means that they will get higher prices for their products. And if they sell the dollar in the country’s exchange market, then due to the weakness in the rupee, they will get more rupees than a dollar.
4. More foreign tourists will come Traveling abroad may become expensive due to expensive dollars. But there is a relief for the foreign tourists who want to come to India. They will get more services due to weakness in rupee. Due to the weakness in the rupee, tour packages will become cheaper. Due to the cheap tour package in the country, foreign tourists will come more.
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