Rupee-Dollar: Rupee continues to fall against the dollar. On Thursday, September 7, 2023, the rupee fell to its lowest ever level and closed at Rs 83.22 against one dollar in the currency market.
This week, the rupee has declined against the dollar for the fourth consecutive day. Apart from the strengthening of the American currency dollar, this historic fall in the rupee has been seen due to the rise in crude oil prices.
Rupee may weaken further
On Thursday, the rupee opened at the level of 83.12 against one 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 last year in October 2022, the rupee had fallen to the level of 83.29. According to currency market experts, the rise in the stock market prevented a major 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 strong dollar and rise in crude oil prices, the trend of decline in rupee may continue.
Rupee weakens due to rise in crude oil
The reason for the weakness in the rupee is the rise in crude oil prices again. Saudi Arabia and Russia have decided to cut crude oil production till 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 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 and 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.
