Rupee Falls At All-time Low At 83.22 Against US Dollar In Currency Market Due To Strong Dollar And Crude OIl Price Surge

Rupee-Dollar: The rupee continues to depreciate against the dollar. On Thursday, September 7, 2023, in the currency market, the rupee has so far fallen to its lowest level of Rs 83.22 against one dollar and closed. For the fourth consecutive day this week, there has been a decline in the rupee against the dollar. Apart from the strength in the US currency dollar, this historical fall in the rupee has been seen due to the rise in the prices of crude oil.

Rupee may weaken further

On Thursday, the rupee opened at a level of 83.12 against a dollar and closed at Rs 83.22 with a fall of 10 paise. For the first time, the rupee has closed at this level, although in October 2022 last year, the rupee had fallen to the level of 83.29. If the experts of the currency market are to be believed, the boom in the stock market prevented a big fall in the rupee. Otherwise, there could have been a big fall in the rupee. However, on Wednesday, foreign portfolio investors sold shares worth Rs 3245.86 crore in the Indian stock market. Experts believe that due to the rise in the prices of strong dollar and crude oil, the process of falling in the rupee may continue.

Rupee weakens on rise in crude oil

The reason for the weakness in the rupee is the rise again in the prices of crude oil. Saudi Arabia and Russia have decided to cut crude oil production by the month of December this year, due to which the prices of crude oil have seen a rise in the international market. Brent crude oil price crossed the level of $ 91 per barrel. At present, it is currently trading at $ 90.19 per barrel.

There will be a decrease in the profits of oil companies

Government oil marketing companies are going to face a big blow due to the weakness in the rupee against the dollar and the rise in crude oil prices, which made huge profits in the first quarter of 2023-24 due to the reduction in crude oil prices. After the strong dollar and crude oil prices cross $ 90 per barrel, the profits of these companies may come down because the government will not allow these companies to increase the prices of petrol diesel despite the cost increase in view of the elections.

Cheap petrol-diesel is not possible!

The cause of trouble for the Modi government at the Center is that after the reduction in the prices of domestic LPG cylinders, there was a possibility of a reduction in the prices of petrol and diesel. But after the rise in the prices of crude oil, it will not be easy for the government to take this decision because government oil companies are not getting profit from selling both the fuels as much as before.