According to the Traders the central bank was expected selling dollars through state-run banks at irregular intervals to put a stop to a sudden sharp fall. But traders do not look ahead to any foremost intervention as the fall of Indian rupee has been in line with fundamentals.
The Indian rupee fell to a record 71 per dollar for the first time in opening trade on Friday. Tracking flaw in almost all other Asian alleys as the most recent round of U.S.-China tariff trade clashes dulled investor risk enthusiasm and made better boost for the dollar.
The moderately convertible rupee was trading at 70.93/94 per dollar, compared with its earlier close of 70.74. It breached 71 per dollar in opening deals before recovering to some extent on the back of dollar sales by state-run banks.
The rising prices of crude oil in the global market are affecting Indian rupees. On Thursday, the rupee had fallen 15 paise to close at 70.74. With the fall of 9.90 per cent, the rupee is the worst performing currency in Asia. In August, the rupee turned down by 3.30 percent.
On Wednesday, Secretary of Economic Affairs Subhash Chandra Garg had said that the rupee could be between 68-70 rupees against the dollar, if the foreign investors return to the Indian market. In 2019, the rupee has declined 10 per cent and this is the worst case for Asian currencies.
The highest impact of this fall is on petrol and diesel prices. India imports 80% of crude oil. The price of crude oil will increase and due to the fall in the rupee oil companies will face inflation. In the last 15 days, the price of diesel and petrol in the national capital Delhi has increased by 1 rupee.
Here are today’s prices of Diesel and Petrol –
Price of petrol in Delhi at Rs 78.52/litre (increased by Rs 0.22/litre) and price of Diesel at Rs 70.21/litre (increase by Rs 0.28/litre).
Price of petrol in Mumbai at Rs 85.93/litre (decrease by Rs 0.21/litre) and price of Diesel at Rs 74.54/litre (decrease by Rs 0.30/litre).