The rupee was seen going to the level of 77 against the dollar in intraday today, which is 1.05 percent below its previous day’s closing. Rupee opened at 76.96 against dollar today.
Rupee was seen going to its life time low in early trade today against the dollar. Due to the rise in crude oil prices, the fear of rising inflation has prevailed. Along with this, the fear of increasing the country’s trade and current account deficit has increased. Its effect was seen on the rupee today and it fell flat against the dollar.
The rupee was seen going to the level of about 77 against the dollar in intraday today, which is 1.05 percent below its previous day’s closing. The rupee had opened at 76.96 against the dollar today.
Analysts say that due to the possibility of Russian invasion of Ukraine and decline in Russian crude oil exports, crude oil prices may remain at higher levels for a long time. Due to the huge imbalance in the global crude market, crude prices are likely to remain at higher levels in the next 6-9 months.
Let us inform that today the price of Brent crude has been seen going around its 14-year high i.e. $140 per barrel. Crude oil has been seen going to its highest level since 2008 in US trading. There is no sign of the oil boiling yet.
The reason for the recent rise in crude oil is the statement of US Secretary of State Antony Blinken in which he has said that we are in talks with our European and other allies to explore the possibility of a ban on the import of Russian oil. And we are trying to find a way of mutual cooperation for this restriction.
According to a report by Kotak Institutional Equities, if the average price of crude oil remains at $ 120 per barrel, then there will be an additional burden of $ 70 billion on the Indian economy, which will be 1.9 percent of GDP. If crude oil prices continue to rise, then inflation in India will be seen rising and there will be a negative impact on the country’s growth.
Significantly, India is the third largest crude oil importer in the world. Due to the rise in crude oil prices, there may be a deficit in the country’s trade and current account, due to which further weakness in the rupee and inflation may be seen.
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