Rupee lowers on inflation risk, worries RBI
Business
oi-Ashutosh Tiwari
New Delhi, May 12: The Indian rupee fell to lower levels against the dollar. Due to which bonds and stocks are also facing crisis. In such a situation, if you are trading in dollars, then you need to work carefully, otherwise you may have to incur losses. Apart from this, the spurt in inflation is increasing the concern of the central bank. Because of which he can take tough decisions.
On Thursday, the rupee fell 0.5% to 77.6313 per dollar, while on Wednesday, the rupee strengthened by 9 paise to close at Rs 77.24 against the dollar. Due to the fall, the rupee hit a record low for the second time this week. With this, the benchmark Sensex index fell 1.7% to its lowest level in two months.
An expert in the matter said that there is turmoil in the market. Inflation continued to raise concerns. Because of which the RBI will forecast inflation in the monetary policy meeting of June. In such a situation, interest rates may increase again by August.
What is the effect of falling rupee on the public?
India imports raw sharp, electric appliances, many food items etc. from abroad. Now due to weakening of the rupee, all these can become expensive. On the other hand, if you are going to travel abroad or get treatment, then you will have to spend more money. There is relief for those people who live abroad and from there send money to the family in India.
attack on opposition government
On the other hand, the opposition parties are continuously attacking the government due to the breakdown of the rupee. Recently, Rahul Gandhi tweeted and wrote that when the rupee fell, Modi used to criticize Manmohan Singh. Now the rupee is at the lowest price, but I will not criticize you blindly. Falling rupee is good for exports provided we support exporters with capital and help create jobs. Focus on managing our economy, not the media headlines.
