The economy of a country is also assessed by the value of its currency and its reputation at the international level.
Although fluctuations in business or other conditions may affect currency prices for some time, but if this situation persists for a long time then it becomes a factor affecting the country’s economy.
From this perspective, the downward trend in the value of Indian Rupee is a matter of concern and there is an immediate need to find a way to improve it.
It is noteworthy that few days ago, a historic fall was recorded in the value of rupee against the dollar, due to which the rupee came down to 83.29 per dollar.
Thus, this significant fall in the rupee against the US dollar in the ‘Interbank Foreign Currency Exchange’ market is being attributed to the continuous increase in crude oil prices.
Apart from this, the dollar is on a strong trend compared to other currencies in the international market. This has had a direct impact on the rupee.
Although it is being claimed that the economic situation is continuously improving, the fall in the rupee is also raising many apprehensions.
In fact, as a result of the currency continuing to remain in such a position, expectations of improvement in the economy become weak and possibilities of recession also arise. A
According to the recently revealed data, there has been a decline in both the import and export sector in the country and in a way, there is disappointment in this matter. Its natural effect is being seen on the value of rupee.
Government data released last week showed that India’s exports declined by 6.86 percent to $34.48 billion in August.
Whereas in the same month last year this figure was 37.02 billion dollars. Similarly, there was a decline in imports and it decreased by 5.23 percent to 58.64 dollars.
During the same period a year ago, it was recorded at $61.88 billion. The value of a country’s currency is based on demand and supply. The currency which is in greater demand in the global capital market will also have a higher price.
Although international conditions often affect currency prices, it affects countries already struggling on the economic front.
Since the US dollar holds a special place in the world trade, the fall in the value of the rupee is mainly judged on this criterion.
At present, business has been affected due to rising crude oil prices as well as the ongoing war between Russia and Ukraine.
But this reason alone cannot be held responsible for the weakening of the rupee.
Generally, the fall in the currency of any country depends on many other conditions. For example, contraction or reduction in purchases in the domestic and international markets also has a direct impact on currency prices.
The main reason for this is the decline in purchasing power of the people, due to which investment is also affected. In such a situation, if employment opportunities become weak, then it can be estimated what the overall result of all this could have on the picture of the currency!