The rupee skidded to an all-time low today. It is believed to have happened due to the buying by the oil refineries and other companies.
At 10:40 am, the rupee was at 52.58/59 per dollar, after touching an all-time low of 52.73, and 0.8 per cent weaker than its previous close of 52.1550/1650.
This move shall bring cheers from the exporters, but it will be problematic for the importers.
India being a net importer this can have serious implications for the Indian economy.
A large bulk of our imports being oil products, this news can result in an increase of petrol and other fuel prices.
This can have a cascading effect on the already high inflation rates.
There is a chance of the RBI interfering in the forex market although it’s official stance doesn’t say anything about this.
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