Ordinary people are already lost in the high price increase. The price of money is gradually sinking above it. On Wednesday, it fell further and set a record of being the lowest again. Market experts fear that this is the first time that the dollar has risen by 18 paisa to 79 rupees (79.03). Their concern is that the Indian currency could weaken further as the economy continues to falter. Which will further reduce people’s purchasing power. Now the question is, how much?
A section of the concerned quarters claimed if the value of money against the dollar continues to fall rapidly, the Reserve Bank will enter the field silently. Dollars are released in the market from foreign exchange reserves. As the supply of American currency increases, so does the price. Prevents the fall of money. According to government sources, the RBI is doing this from time to time, realizing the state of affairs. Especially since India’s foreign exchange reserves are very strong. Otherwise, the money might have been on the floor for so long. However, in doing so, whether the treasury can be weakened, the doubt is forming.
Statistics show that money has been fluctuating since the beginning of this year. About 6.39% fell in six months. The fall this month alone was 1.97%.
Comments of specialist and analyst
Financial expert Anirban Dutta claims that investors think the risk of investing in the dollar is less because it is the currency of developed countries. On top of that, the economic growth of a developing country like India could be hit harder due to sharp rise in prices and rising interest rates to curb it. That is why foreign investment companies are also selling shares in this country. Added to this is the rise in crude oil prices, with a bunch of dollars coming out and stockpiles of exporters hoping for higher prices. He claims that all this is increasing the demand for dollars. As a result, its price is increasing. Brent crude was trading at 118.38 a barrel on the day.
Sriram Iyer, a senior research analyst at Reliance Securities, claims that the aggressive policy of central banks to raise interest rates and reduce cash flows has raised fears of a global recession. The result is the fall of money. On the other hand, Dilip Parmar, a research analyst at HDFC Securities, says money is falling in an attempt to avoid investor risk and push the overall weakness of all regional currencies around the world. He claims that there is a huge demand for US currency, but the Federal Reserve, the country’s central bank, has kept supply low. This is what is pushing the dollar forward. Pulling money back.
Conclusion
Rising dollar prices will hurt import trade, partly. However, Arun Kumar Garodia, senior vice-president at the national level of the EEPC, an association of exporters, said traders would compensate for the losses incurred by them after importing raw materials and making goods.