Rupee hits new low of 78.33 against dollar
Rupee continues to depreciate against the dollar in the forex market. On the last day of the week, the rupee weakened by a paise and closed at 78.33. The dollar index strengthened after Fed Chairman Jerome Powell indicated at a recent Federal Reserve meeting that interest rates would be raised in the near future to curb inflation. In the Indian markets, the rupee has been depreciating against the dollar for some time now and is hitting new lows on a daily basis. Apart from India, the currencies of other countries are also declining against the dollar.
If the rupee continues to depreciate against the dollar, the Indian economy may suffer heavy losses. The country’s import bill will increase rapidly. India is the largest importer of crude oil, which will become more expensive due to the weakening of the rupee. At the same time, experts say that all imported products in the country are becoming expensive. On the other hand, exports from the country will get a boost. Exporters may benefit from the strengthening of the dollar.
Rupee may reach 81 by the end of the year
Global interest rates are rising, especially with the US expected to increase interest rates by 0.50-0.75 bps in the next two months, which will strengthen the dollar index. The devaluation of the rupee against the dollar in the Indian market continued and may fall to 79.00, 79.70, 80.50 and then to 81 levels by the end of the year.