Rupee-Dollar Exchange Rates: Rupee Strengthens by 26 Paise, Breaks Level of 82 Rupees
The Indian rupee closed strongly against the dollar, strengthening by 26 paise to close at Rs 81.96 against the dollar. The level of the rupee has gone below 82 rupees against the dollar after many months. The following are the reasons behind the weakening or strengthening of the rupee.
Know the Reason for the Weakening or Strengthening of the Rupee
The value of the rupee is determined by demand and supply against the dollar. Import and export also have an impact on it. Every country maintains foreign exchange reserves and pays for the goods imported into the country. The Reserve Bank releases data related to this every week. The position of foreign exchange reserves and the demand for the dollar in the country determine the strength or weakness of the rupee.
Know the Effect of Expensive Dollar on You
India has to import about 80 per cent of its crude oil requirement, and it has to spend a lot of dollars on this, putting pressure on the country’s foreign exchange reserves, which in turn affects the value of the rupee. If the dollar is expensive, then we have to pay a higher price, and if the dollar is cheap, then we get some relief.
Rupee Level at the Time of Independence
When India became independent in 1947, the value of the dollar and the rupee was equal. One dollar was equal to one rupee. Then the government started taking loans from abroad, and the credibility of the rupee started decreasing continuously. By 1975, the value of one dollar had become Rs.8, and in 1985, the value of the dollar had become Rs.12. In 1991, during the reign of Narasimha Rao, India took the path of liberalization, and the rupee started falling.
English Summary
After a long time, the rupee broke the level of 82 rupees against the dollar, strengthening by 26 paise to close at Rs 81.96 against the dollar. India’s foreign exchange reserves and import-export policies have a significant impact on the value of the rupee. India imports 80 per cent of its crude oil requirement, which puts pressure on the country’s foreign exchange reserves. When India became independent in 1947, the value of the dollar and the rupee was equal. Then the government started taking loans from abroad, and the credibility of the rupee started decreasing continuously.
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