India imports the most crude oil and edible oil. In return, India has to send crores of dollars abroad. A strong rupee will make import of petroleum products a bit cheaper. Because of this oil companies can reduce the prices of petrol and diesel.
Rupee strengthened against dollar
Some speed is being seen in the rupee as compared to earlier. speed here Dollar Vs getting Rs. Rupee On Tuesday, it strengthened by 17 paise against the dollar and closed at 81.11. This boom is visible because the development is looking good on the domestic economic front while the American currency There has been some softening of the dollar. Behind the strengthening of the rupee foreign fund The arrival of oil and the fall in the prices of crude oil is believed to be the reason. The Indian economy seems to be getting the benefit of both these factors.
The rupee opened at 81.18 at the interbank forex market on Tuesday and touched an intra-day high of 81.04 and a low of 81.45 against the greenback. The rupee finally closed at 81.11 registering a gain of 17 paise over its previous close. On Monday, the rupee declined by 50 paise to close at 81.28 against the American currency. Let us know what will be the benefit of the strengthening of the rupee to the common people.
advantage of rupee’s strength
1- Import bill will decrease
In international business, most of the business is done with dollars only. That is, if you have to buy any goods from abroad, then you have to pay the amount in dollars instead of rupees. If you want to import, you have to pay the amount in dollars only. Therefore, due to the weakness of the dollar and the strength of the rupee, fewer dollars will have to be spent on imports. Import bill will decrease. Due to reduction in import bill, the prices of goods will come down.
Petro product will be cheaper
India imports the most crude oil and edible oil. In return, India has to send crores of dollars abroad. A strong rupee will make import of petroleum products a bit cheaper. Because of this, oil companies can reduce the prices of petrol and diesel.
3-Dal, oil will be cheaper
India imports a major part of its requirement of pulses. Millions of dollars are spent in this. Similarly, India is the world’s largest buyer of edible oils. Such purchases cost the government massive dollars. This expenditure increases further when the rupee is weak and the dollar is strong. But now the rupee is getting stronger, so the bill of pulses and oil will be less. Its prices can also decrease in the domestic market.
4-Help in reducing inflation
Strengthening of rupee will help in reducing inflation at the local level. It is seen that whenever the US Fed increases the interest rates, then the dollar rises. Oil companies suffer the most due to the strengthening of the dollar and they have to pay more bills. This makes oil costlier in the domestic market. Inflation increases due to the cost of oil. But when the rupee gets stronger, the situation reverses.
5-Raunak in the market
If the rupee remains strong then the market remains bomb-bomb. Foreign funds also come fast in the market. Due to the increase in this liquidity, the stock prices keep increasing. If there is a flow of capital in the market, then the interest rate also remains under control, which helps in reducing inflation. Overall, it is beneficial for domestic customers to buy foreign products. Foreign investors also have the convenience of taking interest at a lower rate in India.
English News Headline: rupee keep strong against dollar know 5 main benefits of rupee appreciation