Rupee-Dollar Update: On Wednesday, August 2, 2023, there was an all-round sell-off in the stock market, and in the last two months, the Indian currency rupee against the dollar Rupee) has seen the biggest decline. On a single day, the rupee weakened by 33 paise to close at Rs 82.58 against the dollar.
Heavy selling by foreign portfolio investors (FPIs) was seen in the stock market, due to which the Sensex fell by 1,000 and the Nifty fell by 300 points. It is believed that due to the selling of foreign investors, there was a huge demand for the dollar, due to which the dollar strengthened and the rupee slipped to Rs 82.60 against one dollar.
According to Reuters, three traders believe that many government banks have also bought large amounts of dollars in the forex market on Wednesday. These banks have bought dollars in lieu of importers. Due to which the rupee slipped to the level of 82.61 against the dollar. According to currency market experts, the rupee may weaken further after Fitch’s downgrade of US credit rating and selling by foreign investors. The rupee is expected to fall again to the level of Rs 83.50 against the dollar.
If there is further weakness in the rupee against the dollar, then imports can become expensive. The festive season is about to knock with Raksha Bandhan in which people do tremendous shopping. From electronic gadgets to gold, vehicles are bought on these festivals. But expensive dollar and weak rupee can fade the fun of festivals. Due to the weak rupee, all such items which are either imported or imported items are used may become costlier.
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