Falling rupee and truth of being the fourth largest economy in the world. There is so much greatness in both things, but both these things do exists. Soon India is going to become the third largest economy in the world. It is possible, by then India’s rupee will reach a record decline. But the story that is being seen in the current era is no less than a black night for the country’s currency. In the month of July, about 2 percent has been broken against the dollar. The day of 31 July is left. It is possible that the rupee and broken.
There is also a reason for that. America has imposed a 25 percent tariff on India. The special thing is that this should be the biggest decline in the rupee in any month in the current year. If we talk about June 30, then the rupee has seen a decline of 50 paise. Now the biggest question is whether the rupee will be repaid in the month of August? Or will you get to see further decline?
Rupee falls by 52 paise
The rupee fell 52 paise to close at 87.43 (temporary) per dollar on Wednesday amid uncertainty over the Indo-US trade deal. Forex traders said that the demand for dollar on behalf of importers and continuous withdrawal of foreign capital also put pressure on the local currency. The rupee opened at 87.10 against the dollar, the rupee in the Interbank Foreign Currency Exchange Market. During the trading, it reached a low of 87.05 against the dollar. Finally it closed at 87.43 (temporary) per dollar, which is a decline of 52 paise in the previous closed price. The rupee had come to a low of more than four months on Tuesday. It lost 21 paise to close at 86.91 against the US dollar.
Rupee lost 2 percent in July
The special thing is that the rupee has broken up to about two percent in the month of July. According to the data, the rupee closed with a decline on the last trading day of June and appeared at the level of 85.73. Since then, the rupee has seen a decline of Rs 1.7 in the rupee. According to experts, this can be said to be the biggest decline in the rupee in any one month in the current year. By the way, there is a business day left in the month of July.
It is estimated that on July 31, there may be a decline in the rupee against the rupee. In domestic stock markets, the BSE Sensex gained 143.91 points to close at 81,481.86 points while the Nifty closed 33.95 points to close at 24,855.05 points. According to the stock market data, foreign institutional investors (FIIs) were selling on Tuesday and purely sold shares worth Rs 4,636.60 crore.
Why did the rupee fall
Research analyst Anuj Chaudhary of Mirae Asset Sharekhan said that the Indian President Donald Trump had a drastic decline in the Indian rupee due to uncertainty over the Indo-US trade agreement after the indication of fixing a 20-25 percent fee rate before the August 1 deadline. Chaudhary said that we estimate the rupee between India and the US and the Uncertainty. Globally, rising crude oil prices and withdrawal of foreign capital have also put pressure on the rupee.
25 percent tariff imposed on India
Meanwhile, US President Donald Trump has imposed a 25 percent tariff on India. This means that from August 1, the goods to be exported from India to America will be installed. Earlier, American President Donald Trump had said that the trade agreement with India has not been finalized yet. He had said on the news related to the news of preparing India to face high American fees between 20-25 percent of India.
Earlier, an official said in New Delhi on Tuesday that an American team would come to India on 25 August to negotiate the proposed bilateral trade agreement between the two countries. The party is coming at the end of the next month but the two sides are engaged in removing differences for the interim trade agreement before August 1. Trump suspended the fees levied on several countries including India (26 percent) till August 1. India and US parties completed the fifth round of talks for the agreement in Washington last week.