Rupee Hit A Record Low Of 71/Dollar | Repoter Diary | CNBC-TV18
The currency has been weakening sharply in recent days and is inching to the 71 mark. The forex dealers on Thursday when the rupee fell to 70.82 said that the fall is addition to the strong month-end demand for the American currency, buying by importers, mainly oil refiners in view of surging crude oil prices and capital outflows, weighed on the domestic currency. Normally, if there is a fluctuation in the currency, it does not last for long. In the short term, if there's a fluctuation in the currency exchange rates, it can be because of the supply and demand gap. For example, if there is a high demand for the Indian rupee in the US, then the demanded currency will appreciate, that is becoming more valuable and expensive and fewer rupees can buy one unit of foreign currency, against the dollar. Therefore, if there is a nominal or numerical decrease in the rupee, the currency is becoming stronger. Vice versa is also true. If there is more demand for US dollars, then the Indian rupee will depreciate, that is losing its value and becoming cheaper. Therefore, if there is a nominal or numerical increase in the rupee, the currency is becoming weaker. The weakness in the currency can be due to many reasons but, going by the recent data in the rupee, the reason can be more than just a supply and demand gap. CNBC-TV18 is India's No.1 Business medium and the undisputed leader in business news. The channel's benchmark coverage extends from corporate news, financial markets coverage, expert perspective on investing and management to industry verticals and beyond. CNBC-TV18 has been constantly innovating with new genres of programming that helps make business more relevant to different constituencies across India. India's most able business audience consumes CNBC-TV18 for their information & investing needs. This audience is highly diversified at one level comprising of key groups such as business leaders, professionals, retail investors, brokers and traders, intermediaries, self-employed professionals, High Net Worth individuals, students and even homemakers but shares a distinct commonality in terms of their spirit of enterprise. Subscribe to our Channel: https://goo.gl/hKwgtm Like us on Facebook: / cnbctv18india Follow us on Twitter: / cnbctv18news Website: http://www.moneycontrol.com/cnbctv18/
