Bad news for Indians: Rupee hits new low of 74.27 against dollar
Rupee vs dollar : Rupee breaches record low of 74.06 and today reaches to 74.27 mark.
In this october month, Rupee value against dollar is gradually decreasing day by day. The Indian currency closed at 74.27 against its previous close (October 8) of 73.06.
Rupee could hit the 75 level against the US dollar anytime
High crude oil price: Rise in crude oil price is major reason behind sudden fall of Rupee.
India imports 81% of its crude oil needs and is the 3rd largest importer of crude oil after USA and China. India and most of the countries import petrol from the OPEC (Organisation of Petroleum Exporting Countries). It produces nearly 20–30% of petrol but 70% is bought from majorly OPEC.
Since payment of crude oil prices is done in dollars, a higher crude rate leads to more amount of rupee being converted to dollar, thereby strengthening the US currency.
This will be bad news for the Indian currency since high crude oil prices will lead to a rise in high current account deficit.