Rupee crosses 81 for the first time, lowest level against dollar

The rupee has seen a fall for the second consecutive day. The rupee has hit an all-time low against the dollar. The rupee fell 41 paise to an all-time low of 81.20 against the dollar on Friday. US Treasury yields are hitting an all-year high and strong dollar demand for imports has weakened the rupee. The rupee on Thursday recorded its biggest single-session percentage fall since February. The rupee fell by 99 paise against the dollar on Thursday.

US bond yields rose 4.1 percent

The US dollar index is in the range of 111. US bond yields jumped 4.1 per cent. Traders say that the fall in the rupee is due to the non-aggressive intervention of the Reserve Bank of India and the rate outlook of the US Federal Reserve. The 10-year US Treasury yield increased by 3.70 per cent and the 2-year Treasury yield by 4.16 per cent.

 

 

There may be further weakness in the rupee

On Thursday, the rupee had closed at a record low of Rs 80.86 against the US dollar. The rupee was at 79.97 on Wednesday. On Friday, the dollar index was almost flat at 111.35. remained close to its 2-decade high of 111.81. The dollar index reached this level on Thursday. The rupee was the biggest loser among Asian currencies on Thursday. Analysts say that the rupee may see further depreciation.

What will be its effect on the common man?

Going down to the lower level of the rupee will have a direct impact on the pocket of the common man. The devaluation of the Indian currency will have the biggest impact on imports. The prices of imported goods in India will increase. About 80 percent of crude oil is imported in the country. This would make India pay more for crude and cost more foreign exchange. Therefore, there is a possibility of a rise in oil prices.