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All Time Low: The trend of falling value of rupee continues. The rupee is losing its senses after being defeated by the dollar. On Friday, the rupee slipped the most in the last two years. So much so that it touched an all-time low of Rs 85.81 against one dollar. This is the biggest fall against the US dollar in the last two years. By the time the market closed on Thursday, one dollar was worth Rs 85.27. The range of Rs 85 against the dollar was crossed for the first time on December 19. The continuously weakening rupee has been on the track of annual decline for the last seven years. This month has seen the highest decline in two years.
What does falling rupee mean?
First of all, the fall of rupee is a sign of weakening of the economy. This situation has arisen due to excessive withdrawal of foreign capital. Due to weakening of rupee, India’s foreign exchange reserves are also getting depleted. According to experts, due to the end of both the year and month, there has been a huge demand for dollars by importers for payment. Due to this, the dollar is becoming stronger due to increasing demand. On the other hand, pressure on the local currency is increasing. This is also a big reason for the rupee falling further. Still, softening of crude oil prices and improving trend in domestic markets are keeping the rupee under some control.
Chances of falling below Rs 86
The value of rupee is likely to go below 86 against the dollar. It is expected to fall to this level by the end of March. So far this year, the rupee has weakened by three percent against the US dollar. With the opening of the market on Friday, it reached all time low of Rs 85.35 per dollar. Even after this, the trend of falling rupee continued.
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