As the rupee weakens and inflation rises, strategic economic reforms to boost domestic manufacturing and reduce import dependency are urgently needed
The rupee hit a record low against the US dollar on August 5th and was trading at 84.09 per dollar. This is the biggest fall ever seen in the rupee and the rupee has reached its all-time low. If the currency of any country is stronger than other currencies, then the country is considered strong. In this globalized world, the value of every country’s currency against the US dollar not only impacts the economy of that country but also affects the prices of many things in the market.
Rupee has Fallen 20 Times since Independence: The rupee has fallen almost 20 times since independence; in 1948, 1 dollar was equal to 4 rupees. At that time there was no debt in the country, then when the first five-year plan was implemented in 1951, the government started taking loans from foreign countries and then the value of the rupee also started decreasing continuously.
The continuous outflow of foreign funds from financial markets and crude oil has increased pressure on the rupee. The economy around the world has seen two major shocks – the COVID-19 pandemic and the Ukraine, Israel conflict. India is also not untouched by this. Today, the condition of currencies in major markets around the world is weak.