Rupee drops by 10 paise to end the day at 82.85 per US dollar. Get detailed here - The News Vivo

Rupee drops by 10 paise to end the day at 82.85 per US dollar. Get detailed here

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By Chandra Kanta Dalai

Rupee drops:The native currency experienced an intraday top of 82.82 and a low of 82.94 against the US dollar during the day.

Rupee drops
Rupee drops,Rupee dropsRupee drops

Rupee drops

On Monday, the rupee lost 10 paise to close at 82.85 (provisional) against the US dollar as investor sentiment was dampened by a stronger dollar in the international market and a flattish trend in local equities.

The rupee depreciated by 10 paise from its previous level of 82.75 to 82.85 (provisional) on the interbank foreign currency market. It started out at 82.87 to the dollar.

The native currency’s intraday high and low values versus the US dollar were 82.82 and 82.94 respectively throughout the day.

The dollar index, a measure of the dollar’s strength versus a basket of six different currencies, was trading slightly lower at 105.15.

To reach USD 83.54 per barrel, benchmark Brent crude futures increased by 0.46 percent.Due to sluggish home markets and a strong dollar, the Indian rupee declined. Anuj Choudhary, a research analyst at Sharekhan by BNP Paribas, said that the rise in crude oil prices and FII withdrawals also affected the value of the rupee.

With increasing inflation and positive economic statistics from the US, the dollar gained strength due to worries about higher interest rates lasting longer.

“Risk aversion in global markets and a strong greenback are expected to have a negative impact on the rupee’s trading. Rupee strength may be hampered by importers’ month-end Dollar demand. The Reserve Bank of India’s intervention, though, could halt a sharp decline in the rupee, according to Choudhary. The broad NSE Nifty fell 73.10 points or 0.42 percent to 17,392.70 while the 30-share BSE Sensex finished 175.58 points or 0.30 percent lower at 59,288.35.

Due to the sale of shares worth Rs 1,470.34 crore on Friday, foreign institutional investors (FIIs) were net sellers in the capital markets, according to exchange data.

India’s foreign exchange reserves decreased by USD 5.681 billion to USD 561.267 billion in the week ending February 17, according to data released by the RBI on Friday.

Why price drops

The reasons for a currency’s devaluation can be varied, some of them are:

Inflation: When a country experiences high inflation, the purchasing power of its currency decreases. As a result, the value of a currency can decrease against other currencies.

Interest Rates: A country’s central bank can adjust its interest rates to control inflation and economic growth. When the central bank lowers interest rates, it can make a country’s currency less attractive to investors, causing its value to fall.

Political and Economic Uncertainty: Political instability, conflict, or uncertainty about a country’s economic future can cause investors to lose confidence in a currency, causing it to depreciate.

Trade Imbalance: When a country’s imports exceed its exports, it can result in a trade deficit. This can cause a country’s demand for currency and its value to decrease.

Speculation: Speculators can bet on a currency, causing its value to go down. This can happen when investors believe that a currency is overvalued or that there is risk associated with a particular currency.

These are some of the most common causes of currency depreciation, but many other factors can also be influenced. It is important to note that currency values ​​are affected by a number of complex factors and changes in currency values ​​can have a significant impact on international trade, investment and economic growth.

Why Indian rupee is falling down?

I assume you are talking about the devaluation of one currency against another currency or a basket of currencies. The reasons for a currency devaluation can be varied, some of them are:

Inflation: When a country experiences high inflation, the purchasing power of its currency decreases. As a result, the value of a currency can decrease against other currencies.

Interest Rates: A country’s central bank can adjust its interest rates to control inflation and economic growth. When the central bank lowers interest rates, it can make a country’s currency less attractive to investors, causing its value to fall.

Political and Economic Uncertainty: Political instability, conflict, or uncertainty about a country’s economic future can cause investors to lose confidence in a currency, causing it to depreciate.

Trade Imbalance: When a country’s imports exceed its exports, it can result in a trade deficit. This can cause a country’s demand for currency and its value to fall.

Speculation: Speculators can bet on a currency, causing its value to go down. This can happen when investors believe that a currency is overvalued or that there is risk associated with a particular currency.

These are some of the most common causes of currency depreciation, but many other factors can also be influenced. It is important to note that currency values ​​are affected by a number of complex factors and changes in currency values ​​can have a significant impact on international trade, investment and economic growth.

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