RBI Intervening in NDF Market: On Friday, October 7, the rupee closed with a historic fall against the dollar. The Indian currency market touched the level of 82.33 for the first time. In view of the falling prices of the rupee, the Reserve Bank is constantly keeping an eye on it. Now RBI has taken a big decision to control the prices of rupee.
According to media reports, the Reserve Bank is preparing to control the falling prices of the rupee by selling dollars in the non-deliverable forward market. Let us tell you that NDF determines the value of currencies by trading currency. In such a situation, RBI will sell its dollar reserve to control dollar prices. In such a situation, it will help in controlling the falling prices of the dollar.
Reason for depreciation of rupee
The economy of the whole world is going through a difficult phase due to Corona epidemic and Russia-Ukraine war. Inflation is increasing all over the world including India. It has also had a bad effect on the superpower America. In the US, the inflation record for the last several years has been broken.
In such a situation, the Federal Reserve of America has increased its interest rates by 0.75% to rein in inflation. Since then, there has been a steady decline in currency around the world. Its effect is also visible on the Indian rupee.
RBI is keeping an eye on the falling prices of the rupee
It is reported quoting sources that RBI is trying to control the falling prices of rupee in the NDF market with the help of two private sector banks. Along with this, it has also been learned that RBI is keeping a close watch on the market situation at this time, making every effort to control the falling prices of rupee.
What will be the effect of expensive dollar
The falling price of rupee i.e. expensive dollar can have a big impact on India’s economy. Due to this, oil companies will have to buy crude oil by paying more dollars. This will make imports expensive and common consumers will have to pay higher prices for petrol and diesel.
At the same time, it will also affect millions of children going abroad because now you will have to pay fees by paying more dollars. With this, an increase in the rate of cooking oil will now be recorded because now the government will have to spend more foreign exchange to import oil. With this, an increase will be recorded in India’s import bill.
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