Understanding the Rupee’s Recent Drop Below 86 Per Dollar
The Rupee’s Significant Fall
The rupee dropped to 86.08 against the dollar on Wednesday. This was a big fall of 48 paise from the day before.
RBI Steps In
The rupee hit a low of 86.22 during the day. The Reserve Bank of India (RBI) had to step in to help, say traders.
Geopolitical Tensions Play a Role
Last Friday, the rupee had its biggest one-day fall since May 8. This happened after Israel attacked Iran’s nuclear and military sites. The tension made investors nervous and hurt the rupee. The RBI had to act again to limit the damage.
What Experts Say About the Rupee’s Future
KN Dey, a foreign exchange expert, gave his thoughts. He said, “The new geopolitical issue won’t end soon. It’s hurting the rupee. The outlook was good yesterday, but today’s drop shows a negative trend.”
What Could Happen Next
Brent crude oil has gone up by nearly 10%. If the tension continues, the rupee could fall below 86.50. This depends on how much the RBI can handle.
The Importance of the Strait of Hormuz
The Strait of Hormuz is a crucial route for oil. It handles nearly 20.9 million barrels of oil every day. That’s about 20% of the world’s oil. Most of this oil, about 83%, goes to Asia.
Key Takeaways
- The rupee fell to 86.08 against the dollar.
- The RBI had to step in to help the rupee.
- World tensions are affecting the rupee’s value.
- Oil prices have gone up by nearly 10%.
- The Strait of Hormuz is very important for the world’s oil supply.
