The rupee is falling faster than raindrops in Delhi! Yes you heard that right. The rupee has breached the 88 dollar mark for the first time in decades, although anyone not living under a rock will know this is partly due to US tariffs. However, there are other reasons too responsible for the same, which we will explore through this article, so stick with us till the end.
How much has the Rupee fallen?
The rupee has depreciated 10 paise to close at an all-time low of 88.19 against the US Dollar on Friday. Moreover, during the Intraday trading, the value of the rupee came down to 88.33. However, it bounced back a little today, closing at 88.19 against the dollar. This retreat in value was primarily attributed to the strength in domestic markets, says expert Anurag Chaudhary, a Research Analyst of Currency and Commodities at Mirae Asset- Share Khan.
Why is the rupee falling?
The first and foremost reason for the fall in value is obviously the battering of US imposed tariffs, which has had several repercussions like an imbalance of trade, increased dollar demand, and reduced investments.
Other than this brent crude was also trading higher by 0.99 percent, which is 68.15 dollars in futures trade. This hurt the rupee, among other reasons.
Foreign institutional investors sold equities worth Rs. 8,312 crores in the markets, creating a sense of panic.
Social Media Reactions
The internet has its own quirky way of reacting to falling rupee value with memes and tweets, like a user shared a post in which Nirmala Sitharaman used to criticize falling rupee value being in the opposition, however, now being the finance minister, says that the dollar is getting stronger and the rupee is not falling. He also said Nirmala Sitharaman is not protesting about it now.
Another user shared an older tweet from Bollywood actress Juhi Chawla where she criticized the falling rupee value; however, she now remains absolutely silent on the issue. The user took a dig at Juhi's tweet.
The fall of the rupee's value is not a laughing matter, but rather a very serious one. Since economists are signalling that recurring depreciation of the rupee will pave the way for inflation and complicate trade balances.