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Rupee stop dropping opens at 66.42 against US Dollar

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The fall from last 6 trading sessions in rupee against dollar has stopped on Tuesday. On Tuesday, the rupee appreciated by 5 paise to 66.42 against the dollar. On Monday, the rupee closed at 66.47 dollars a dollar. On Monday, 35 paise declined in rupee all day.

2-year long fall
With the fall in rupee for the sixth consecutive day on Monday, it became the longest decline of 2 years. On Monday, the rupee appreciated by 8 paise to 66.20 per dollar. At the end of the business, it reached at a price of 66.47 dollars per dollar. This is a low level of rupees for more than a year. Experts say that the impact of bond yield, rising crude prices and the continued selling of FIIs are showing the rupee.

Reasons for Declining Rupees

Ajay Kedia, director of the Kedia Commodity, said that demand for dollar has increased sharply in Brent crude oil prices, which has negatively impacted the rupee. Selling of FIIs also has weakness in rupee. As a result, the rupee has come down to the lower level of the last 13 months. At the same time, there is also a fear of the increase in geopolitical tension and trade war. On the other hand, the bond yield of 10 years is fast. Bond yields and rupee movements are up to one another.

Impact of rupee fall

The fall of Rupee is afraid to increase inflation. Export is expensive from this, which can increase the prices. Due to weakness in rupee, the government is afraid of increasing pressure on government deficit, which can lead to government spending, its direct impact could be on the country's growth rate. A large portion of India's imports go into the import of petroleum products and it is paid in dollars. In such a situation, due to the fall in rupee, the import bill of crude will increase. This can increase the prices of petrol and diesel.


Comments

  1. Among stocks, Vedanta and ONGC were the top gainers, while Yes Bank, Adani Ports, and Titan emerged as the biggest laggards on both indices.

    share-tips-expert

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