Crude oil became most expensive during Modi era.
The price of crude oil in the international market has been rising continuously for some time now. On Monday, the price of crude oil reached the highest level of seven years. At the same time, the interest rate in the US bond market is also rising, which has strengthened the dollar. Due to all these reasons, the pressure on the rupee increased and today the rupee fell by 37 paise to close at 75.36 per dollar, which is the lowest level of 15 months.
According to a Reuters report, the world’s largest economy is currently facing an energy crisis. After the corona epidemic, a large-scale vaccination program was carried out. It has started reaping its benefits and there has been a tremendous improvement in economic activities. Industrial activities have intensified and power demand from industries has increased. In such a situation, the problem of energy crisis does not seem to be going away in the short term. All these factors are affecting the price of crude oil and its prices are climbing very fast.
Inflation will increase if import bill increases
Traders said the rupee has slipped below the Rs 75 level for the first time this year on fears of an increase in import spending following a sharp rise in crude oil prices and increased forex outflows due to a rise in US bond yields. On Friday, it closed at Rs 74.99 per dollar. Jatin Trivedi, Senior Research Analyst, LKP Securities, said, “Rupee again weakens as crude oil trades higher at $84.20…Rupee may remain in range of 75.00-75.60 going forward.”
Bottom closing after 14 July 2020
The rupee opened weak at Rs 75.11 in the interbank foreign exchange market. During trading, it remained in the range of 75.06 high and 75.39 low and finally despite reaching the record level of the domestic stock market, the rupee fell by 37 paise to 75.36 against the closing price of the previous trading session. closed. This is the weakest closing level since 14 July 2020.
Crude oil at $84
According to the information available on Investing.com’s website at 9 pm, crude oil was trading at a level of $ 84 per barrel. At present, it is up by about 2 percent. This is the fourth consecutive week when crude oil has gained momentum. In August, crude oil was around $ 65-67, which has now reached $ 83-85.
Better returns in the US bond market
The 10-year US bond yield is currently at 1.612 per cent. This is the seventh consecutive week that bond yields have risen. This is the third consecutive month on a monthly basis. In August, the return on bonds used to be in the range of 1.15-1.20 per cent, which has now increased to 1.58-1.60 per cent.
Also read, Now the battle to rule the sky! After Tata, Jhunjhunwala also jumped in the fray, his airline ‘Akasa Air’ got approval
Also read, In the next 6 months, Indian companies will raise 75 thousand crores through IPO, how did India become the favorite destination of investors?