Finance updates: Due to America-Israel and Iran tension and crisis in Middle east the prices of the crude oil is increasing as a result of which today the price of Indian Rupee against American Dollar is recorded at its lowest at 92.05.
According to the financial experts, if this tension carries further, then there will be pressure on Indian Rupee and it may further go up. In 2026 the price of rupee has gone down by more than 2% and performance of Rupee in Worlds Emerging Markets is at the one of the lowest valued currency.
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Key reasons for fall in the price of Rupee
Notably, the main reason behind the fall in the price of Rupee is the increase in the price of Crude oil due to crisis in the Middle east and India imports more than 80% of the oil requirements from Middle east countries and if this crisis continues there will be pressure on Rupee and according to sources India has reserve of only 25 days of crude oil.Secondly if the prices of crude oil increase the prices of Petrol and Diesel may also tend to increase in the local market and as a after effect the inflation will increase and transportation cost will also increase due to which prices of commodities will also go up.Lastly the Share market is also declining and the FIIs are withdrawing their investments from the market and investing them in the American markets due to which there is a pressure on the Indian rupee.
Impact on Common Man
Firstly, due to increase in the price of crude oil, the prices of diesel and petrol in the domestic market are likely to increase. As a result transportation cost will also increase resulting in the increase in the prices of daily commodities.
Secondly all the businesses where payment is done in dollars such as electronic chips, mobiles, automobile parts, batteries, laptops etc will also increase thus increasing the overall price of the goods making an impact on common man.
Thirdly the cost of travel and education in abroad will also increase because in most of the countries dollar is the most preferred currency in operations.
Lastly the impact of rise is dollar price will effect the fall in the share market resulting in decrease in the value of investments made by common man in share market, mutual funds will also likely to go down.