Rupee vs Dollar: The biggest fall in the rupee against the dollar, slips below 81

After increasing the interest rate in America, there is a big fall in the rupee. On Friday, the rupee opened by crossing the lowest level of 81 after a record fall against the dollar.

Rupee vs Dollar: The biggest fall in the rupee against the dollar, slips below 81
Rupee vs Dollar, image source: economictimes

There was a major fall in the value of rupee against the dollar on Friday. The rupee slipped 44 paise to 81 against the dollar. This is the first time that the value of the rupee has been seen at this level against the dollar.

The rupee opened at 81.08 against the dollar, soon after which the rupee slipped to a level of 81.23. This is the second day in a row when the rupee has depreciated significantly against the dollar. The rupee has depreciated by 99 paise against the dollar yesterday. The reason for this fall in the rupee, experts are acknowledging the rise in the dollar index, which is trading at its 20-year high level of 111.39.

Fall after interest rate hike

The major depreciation of the rupee against the dollar comes after interest rates hiked by the US as well as other major central banks of the world. The US Central Federal Reserve on Wednesday raised the interest rate by 0.75 percent to control inflation. Since then, there has been a continuous decline in the rupee.

Forex traders say that due to increasing war in Russia and Ukraine, increase in interest rates by the world's central banks to reduce inflation, the rupee may increase against the dollar. 

Big central banks are raising interest rates

The Bank of England has raised interest rates by 0.50 percent to 2.25 percent, the highest level of interest rates in 14 years, says the IFA Global Research Academy. The Swiss National Bank has increased interest rates by a record 0.75 percent to 0.5 percent. At the same time, the Bank of Japan has intervened in the forex market for the first time in the last 24 years due to the falling price of the yen against the dollar. However, they have kept the interest rates low.