The Indian Rupee has reached its all-time low. The rupee has fallen by about 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, there has been a continuous small and big decline in the rupee. Earlier yesterday i.e. on October 5, the rupee had closed at its lowest level of 84.1225 per dollar. On October 10, the Indian currency was at the level of 83.9685 against the dollar. On October 17, it had reached the level of 84.03 against the dollar.
Three reasons for the fall of rupee
- The dollar rose due to the results of the presidential elections in America.
- Foreign investors sold Rs 16,358 crore in the Indian market.
- The Federal Reserve is expected to cut rates later this week.
- American market Dow Jones rose by 1300 points or more than 3%.
There was a rise of 901 points in the stock market
Amid US presidential election voting and results, the Sensex closed at 80,378 on Wednesday with a rise of 901 points (1.13%). Nifty also increased by 270 points (1.12%), it closed at the level of 24,484. At the same time, 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 declined. Out of 50 Nifty stocks, 41 rose and 9 declined. There was a rise in all the sectoral indices of NSE. The IT sector had the highest increase of 4.05%.
Reached intraday low of 84.31
The rupee opened at 84.23 intra-day. Which kept trading between 84.15 to 84.31. On October 4, market experts had predicted that the rupee could reach an all-time low of 84.25 in the coming days.
Importing will be expensive Fall in rupee means that import of goods is going to become expensive for India. Apart from this, traveling and studying abroad has also become expensive. Suppose, when the value of rupee was 50 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 currency determined? If the value of any other currency decreases in comparison to the dollar, it is called falling, breaking, weakening of the currency. Currency Depreciation in English. Every country has foreign currency reserves with which it conducts international transactions. The effect of increase and decrease in foreign reserves is visible on the price of currency.
If the dollars in India's foreign reserves are equal to the US rupee reserves, then the value of the rupee will remain stable. If our dollar decreases, the rupee will weaken; if it increases, the rupee will strengthen. This is called 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 1,077 points.
Amidst the US presidential election voting and results, the Sensex closed at 80,378 today i.e. on November 6 with a rise of 901 points. Nifty also gained 270 points and closed at the level of 24,484.
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