Such devaluation puts significant downward pressure on already high crude and raw material import prices, paving the way for higher imported inflation and manufacturing costs and increased retail inflation. The rupee-dollar exchange rate is altered as money moves out of India, devaluing the rupee. See also How India can take advantage of the overall boycott of China? As a result, FIIs liquidate their investments to protect themselves from future losses, вЂњPSL Advocates & SolicitorsвЂ™ Managing Partner, Sameer Jain, commented. вЂњWhen the rupee depreciates, the value of FIIвЂ™s investment decreases, influencing the overall amount invested. When the Federal Reserve of the United States raises interest rates, the return on dollar assets rises compared to those in emerging countries like India. The US Federal Reserve is projected to raise policy rates by 75 basis points in reaction to historic retail inflation in the United States. As India buys more than it exports, this might add to inflationary pressures. The rupee fell to an all-time low today as more investors sold out rupee-based investments in favour of dollars. A rupee decline is triggered when investors sell rupee-based assets in favour of dollar-based ones, which is the reason for the current rupee drop. When one rupee can purchase more dollars, the rupee strengthens, and vice versa. The INR is depreciating due to these global events, вЂњEquitymasterвЂ™s Head of Research Behavioral Technical Analysis, Vijay Bhambwani, stated.

The price of Indian crude is at a ten-year high. High oil prices cause вЂњimported inflation,вЂќ influencing company profitability and foreign direct investment (FDI) inflows. Rising oil costs are exacerbating the strains on these currencies. As a result, emerging market (EM) currencies are losing ground against the dollar. вЂњThe US Dollar Index (DXY) has climbed once again and is on the verge of testing the 105 level. Cost increases contribute to inflation, which raises the price of products and services, making it more difficult for the commoner to manage his budget. Due to higher production costs, a weaker rupee makes imports more expensive and influences India Inc.вЂ™s profitability. The value of the Indian rupee depreciates when the Dollar index rises, making the dollar stronger. Stocks in American corporations, treasury bonds, US government bonds, currency bonds, and other securities are among them. The Reserve Bank of India (RBI) turned net purchaser of the US currency in April, after it bought USD 1.965 billion from the spot market, according to RBI's monthly bulletin for June.When the dollarвЂ™s value grows, so does the value of all connected underlying assets.

It also said it would hike rates aggressively for the rest of the calendar year. On Wednesday, the US Federal Open Market Committee, on expected lines, raised the target range for federal funds rate by 75 basis points to 1.50-1.75 per cent. 'So, I don't see any adverse impact of that (rate hike by Fed) because Reserve Bank of India, in the two previous cycles, has already taken adequate measures,' he said. directly or indirectly they are moving in tandem,' Seth told reporters. 'All central banks are grappling with it and taking adequate measures which are needed to control the inflation. The government does not see any adverse impact on the Indian economy post the US Federal Reserve's decision to raise interest rates by 75 basis points, Economic Affairs Secretary Ajay Seth said on Thursday. Meanwhile, an RBI article has said India is better placed than many other countries to avoid the risks of potential stagflation with recovery broadly on track, notwithstanding an increasingly hostile external environment. Global oil benchmark Brent crude futures slipped 0.78 per cent to $118.88 per barrel.ДЇoreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 3,257.65 crore, as per exchange data. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.60 per cent to 104.25. On the domestic equity market front, the 30-share Sensex was trading 251.06 points or 0.49 per cent lower at 51,244.73, while the broader NSE Nifty fell 90.15 points or 0.59 per cent to 15,270.45. In the previous session, the rupee had closed at 78.10 against the US dollar.

Indian rupee to dollar