On 9 June 2022, Indian Rupee recorded an intraday low of 77.81 against the US Dollar. The reason for this could be the increased crude oil prices, globally. This increases tension on imports and exports for the country and as a result, can raise inflation. The rupee was trading at 77.80, which is the lowest hit.
On Wednesday, June 8, the rupee was recorded lowest at 77.68 against the US Dollar. On Thursday it hit an intraday low at 77.81 and floated at 77.80. It opened at 77.64 and slipped by 13 paise. Previously, it was recorded this low on May 17 at 77.79. The reason for this is the rapid increase in crude oil prices. After China imposed a lockdown in many cities their exports were slowed down. The Russia-Ukraine war had already worsened the oil import-export situations, globally. This has tightened the usage of available resources in countries. India imports the majority of crude oil from Iraq and Saudi Arabia.
The dollar index was trading at 102.55 against a basket of six currencies. It was recorded at a 0.01 percent higher rate. Though the global oil price rate had seen a decline, it wasn’t fruitful for India. The Global oil benchmark was recorded at $123.43 per barrel. A decrease of 0.12 percent.
RBI has also increased the repo rate on Wednesday. This action was taken to gain control over rising inflation in the country. This is a matter of concern as RBI has increased this rate twice in 5 weeks. Currently, RBI aims to maintain an inflation rate between 4 to 6 percent. The World Bank has also declared the global economic growth rate at 2.9 percent which gives the US an edge and raises dollar value.
The increase in crude oil prices has proved to be a major inconvenience to citizens. As the fuel prices rise, prices for other commodities rise, transport being primary. Global inflation is rising and has affected the economic growth of all countries. According to the World Bank, India’s current economic growth is 7.5 percent down from 8 percent. The rupee is further expected to decline to 80-81 in the next five to six months, as quoted by experts.
