The Indian rupee declined by 14 paise to Rs 52.85 against the US dollar in early trade today on good dollar demand from banks and importers amid a weak trend in the domestic equity market.
what is the exchange rate today? 52.85 rupees per dollar
what was it last? 52.71 rupees per dollar
where? On interbank foreign exchange trade
why? Due to increase in demand for dollars from banks and importers.Rupee, the worst performing Asian currency, is expected to remain under pressure in the near term due to a rising import bill, slowing exports and dwindling inflows.
Adverse Impacts of declining rupee: Imports become costlier. Production costs on agriculture increases as most of the fertilizers are imported.Hardware technology becomes cotlier. Energy which constitutes the biggest portion of the import bill absorbs more rupees.Transportation cost increases as fuel price increases.