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Rupee falls to its record low against Dollar

The rupee breached the Rs 69 mark against the Dollar on Thursday. It may be a good news for exporters but RBI has to step in to do something to stop the fall. One of the main reasons for the rupee fall is the rising demand for dollar from oil companies, banks, and importers. The rising crude oil prices have put a lot of pressure on the rupee. On Wednesday Rupee fell sharply by 37 paise and the trend is continuing. As crude oil prices rise, the dollar strengthens resulting in higher current account deficit and higher inflation. The weakening of rupee is a cause for the concern as capital outflows will raise and slow down of capital inflows will follow. RBI has to keep the Rupee at the current level by intervening now. Otherwise, Rupee may further depreciate to the level of 70.  The current trade wars and the demand from the US on an oil embargo against certain countries such as Iran will add to our woes further.

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