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Today Date : Monday, May 27, 2024

The historic decline in Rupee value

The historic decline in Rupee value

With the value of the Indian Rupee declining rapidly against the US Dollar, last Friday it was impacted badly by the market closure. It saw a historic decline in value on Monday.

Besides Indian Rupee, the values of the Japanese Yen and Chinese Yuvan currencies also tumbled mainly due to the inflation in America.Amidst big expectations, the data on American inflation has upset the international investment market. With prices of fuel and food products spiraling, the country's inflation has touched a 4 decade high unexpectedly. 

After December 1981 consumer inflation in the USA increased manifold. Compared to last year, fuel prices have increased by 34.6 percent in 2022.Be it in India or USA, a rise in inflation will impact adversely the rate of growth. To tame it continually, every country's Central Bank would change the bank interest rate and control the money circulation. As foreign investments in the Indian financial market have started to take flight ,the value of the Indian Rupee has fallen drastically by 78.27 Rs/dollur.As the value of the Rupee declines the cost of imported goods would increase. This includes crude oil to all raw materials for production. This will hit the people badly. Indian Rupee value decline should reverse with a decline in inflation.