The value of Indian Rupee is decreasing day by day against US dollar and reached its lowest point on Monday when the value of rupee touched 69.62 Rupees per dollar. Since the year has started, the benchmark equity index BSE Sensex has risen by 11 percent and looking at its 300-point fall in the morning, investors are shocked. Along with the Sensex drop, the value of rupee also hit an all-time low rate. This stumbles in the value of rupee occurred because of the currency rout in Turkey.
Turkey is currently facing a currency turmoil where the value of its currency ira is falling day by day. The currency almost dropped about 16 percent on Friday and on Monday morning, the currency slipped another 12 percent. The country’s inflation rates stooped by 15.9 percent last month. Over the last 12 months, Turkey’s currency has dropped about 50 percent and the country is distressed. All this currency turmoil is due to Turkey’s import and export habits. Turkey imports more goods than exporting. Turkey’s debts are also a reason for the fall of its currency value.
Due to the drop in Lira’s value, the Global market is making noise as an effect of an ongoing trade war. The world economy is at risk because of the Turkish currency. Along with India, other counterparts like China, Russia, South Africa, and Brazil also felt the Jolt on Monday.
As an action to stabilize the rupee value, several state banks are making an attempt to sell the dollars on behalf of the central bank. Compared to the fall of the Argentine peso and Russian Ruble, Indian currency is performing better in the market against the dollar.
Reserve Bank of India is intervening to stop a drop in the local currency with respect to US Dollar. The only currency that is resisting its fall till now is China. China’s currency, Yuan is fell about half a percent due to Turkey’s Lira but still the resistance is praiseworthy. We hope with the corrective measures taken up by Finance Government we will hit back the previous position once again.