Rupee fell to all time low against dollar: Price of 1 dollar became Rs 95.94, due to which there is a danger of inflation increasing.

Middle East tensions: The increasing tension between America, Israel and Iran and the fear of supply disruption in the Hormuz Route has created fear in the market. Due to the war, investors are rushing to the dollar for safe investments.

Crude oil prices: India imports more than 85% of its crude oil needs. In the international market, Brent crude has crossed $ 107 per barrel. Due to oil becoming expensive, India has to pay more dollars, due to which the pressure on the rupee has increased.

Strengthening dollar index: The dollar index, which measures the strength of the dollar against 6 major currencies of the world, has reached the level of 99.05. When the dollar strengthens in the global market, the rupee and other Asian currencies weaken.

Withdrawal of foreign investors: Foreign institutional investors are continuously withdrawing money from the Indian stock market. On Wednesday alone, FIIs sold shares worth more than Rs 4,700 crore. The value of rupee is decreasing due to dollar leaving the market.

Fear of rising inflation: Wholesale inflation (WPI) in India has reached a three and a half year high. Rising energy prices have increased the risk of ‘imported inflation’, which has worsened economic sentiments.

Dollar expensive, danger of rising inflation in India

The Middle East conflict is being considered as the most serious energy crisis in decades, which is directly impacting India.

oil prices: India’s import bill has increased due to expensive crude oil.

Essential goods expensive: Supply of LPG, plastic and other petrochemical products affected.

Fear of inflation: Due to the dollar becoming expensive, petrol, diesel and imported goods will become expensive, due to which retail inflation may increase.

Studying and traveling abroad is expensive: Now you will have to spend more money to buy dollars for going abroad or for studies.

Electronics Expensive: Mobiles, laptops and imported parts can be expensive, as payment is in dollars.

Oil production at lowest level in last two decades

According to a Reuters survey, oil production of OPEC countries in April was at the lowest level in the last two decades. Saudi Aramco CEO Amin Nasser has warned that it may take until 2027 for the market to stabilize due to disruptions in oil exports from the Strait of Hormuz. Due to this, about 10 crore barrels of oil is being lost every week.

Investment bank JP Morgan has said in its report that even if the Strait of Hormuz opens next month, oil prices will remain around $100 this year. It has been said in the report that even after the opening of the road, it will take time for the supply to become normal due to lack of logistics and tankers.

Prime Minister’s appeal and government’s strict steps

In view of the continuous decline in the rupee, Prime Minister Narendra Modi had last week appealed to the countrymen to save foreign exchange reserves. He had asked people to reduce wasteful expenditure and maintain economic discipline in the interest of the country.

In this series, the government had increased tariffs on the import of precious metals on Tuesday night so that the speed of outflow of dollars could be reduced. Traders believe that further decline in rupee may be seen in the coming time.

How is the value of currency determined?

If the value of a currency decreases against the dollar, it is called currency depreciation.

Every country has foreign currency reserves, through which international transactions take place. Its increase and decrease affects the currency.

If there are enough dollars in India’s foreign reserves, the rupee will remain stable. If the dollar decreases, the rupee will weaken; if it increases, it will become strong.

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Petrol-diesel became costlier by ₹ 3-3, new prices implemented: Petrol in Delhi became ₹ 97.77 per liter, companies still incur losses of ₹ 25-30 per liter.

Petrol and diesel have become costlier by Rs 3 each per litre. Now petrol will be available at Rs 97.77 per liter in Delhi. The price of diesel has increased to Rs 90.67 per liter. The new prices have come into effect from today, May 15. This increase in prices has been made after about 2 years.

At the same time, companies are still incurring losses of ₹25-₹30 per liter on petrol and diesel. Along with petrol and diesel prices, CNG has also become costlier by ₹2 per kg in major cities. Now ₹ 79.09 will have to be spent for one kg CNG in Delhi. Read the full news…

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