The rupee has depreciated by 1.97 per cent against the dollar and by 6.39 per cent so far this year. The main reason for the weakness in the rupee is the outflow of capital from the domestic market by foreign investors and the rise in crude oil prices. Rupee continues to depreciate against the dollar.
On Wednesday, it weakened by 18 paise to reach an all-time low of 79.03. With a slight weakness, it went open at 78.86 to 79.05. On Tuesday, it had closed at an all-time low of 78.85, weakening by 48 paise. The rupee has weakened by 1.97 percent against the dollar this month and 6.39 percent so far this year.
The main reason for the weakness in the rupee is the outflow of capital by foreign investors from the domestic market and the rise in crude oil prices. Importers will be hurt by the fall in rupee, while exporters will benefit. On importing any item, we have to pay more rupees in dollars. Traders will get more rupee in terms of dollar in exports. PLC/GT