The direct impact of the sharp rise in crude oil prices in the international market and increasing tension in West Asia is now visible on India’s economy. On Friday, the rupee weakened against the US dollar and crossed the level of 93 for the first time. This decline is not only a matter of concern for investors, but can also affect the pockets of common people.

The rupee fell to 93.15 per dollar in Friday morning trade, its lowest ever level. This new fall in the rupee, which has been under continuous pressure in recent times, has come due to the global situation. Investors are cautious about the ongoing conflict in the Gulf region, as it is impacting energy supplies and causing oil prices to rise rapidly.

Rising oil prices became a major reason

The price of Brent crude remains above $100 per barrel, which is a big challenge for India. India imports most of its crude oil needs, so the increase in prices directly increases the country’s expenditure. Due to oil becoming expensive, the import bill increases and the demand for dollars also increases. This puts further pressure on the rupee.

Investors’ attitude changed

In an environment of global uncertainty, investors are moving towards safer options to avoid risk. In such a situation, the demand for American dollars has increased, due to which the dollar is strengthening and currencies like rupee are weakening. Along with this, foreign institutional investors (FIIs) have started withdrawing money from the Indian stock market. When these investors convert their investments into dollars, the fall of the rupee further accelerates.

Impact of American policies also

The cautious stance of America’s central bank has also affected the situation. The dollar remains strong due to low chances of interest rate cuts and focus on inflation. The effect of this is that the availability of money globally is becoming limited and investment in emerging markets is looking less attractive.

What will be the impact on common people?

The impact of rupee weakness and high oil prices will not be limited to the market only. Due to this, imported goods may become expensive, especially petrol-diesel and other essential items. This will have a direct impact on inflation and daily expenses may increase, which will increase the burden on the pockets of common people.