Indian rupee suffered a record breaking fall in its value as compared to American Dollar in this month. The value of rupees decreased by 56 paisa this Monday sliding the value to Rs 81.54 per dollar. Undoubtedly this is the lowest recorded value of rupee while dollar achieving its highest value during last 20 years.
However this development would put a negative impact in the economy of India as the country would witness an upsurge in the cost of Crude oil. Along with it many other commodities would become even more expensive. Reserve Bank of India (RBI) is expected to issue an increment on September 30 in Repo rate to abate the problem of expensiveness.
The recent increase in interest rate by Federal Reserve has imputed pressure over rupees. Rise in taxes and withdrawal of foreign currency might fuel the inflation of prices. Monetary Policy Committee (MPC) of Reserve Bank of India has called for a meeting this week. Executive Director of the Solvent Extractors Association of India B.B Mehta also pointed towards an increase in prices of petroleum. This has also doubled trade deficit to 27.98 Arab Dollars in August. All this together would put a direct impact on the life of common people because it would result inflation in prices of various commodities.
As 80 % of the crude oil used in India is brought from other countries, more foreign capital is required to be invested to fulfil the requirement of crude oil. So the citizens would have no other options accept paying more amounts for oil.
Alteration of the value of Indian Rupees per American Dollar in this year is recorded as follows:
1st January: 75.43
1st February: 74.39
1st March: 74.96
1st April: 76.21
1st May: 76.09
1st June: 77.21
1st July: 77.95
1st August: 79.54
29th August: 80.10
22nd September: 80.79
26th September: 81.54