In fact, economic experts attribute this drastic depreciation of the Rupee to four key factors. First, the price of Brent crude in the international market has currently surged past $110 per barrel. Since India imports the vast majority of its oil requirements, a rise in oil prices inevitably increases the demand for Dollars, thereby causing the value of the Rupee to decline. Second, the geopolitical conflict between Iran and Israel in the Middle East has created an atmosphere of uncertainty in the global market; consequently, investors are placing greater trust in the Dollar as a safe-haven asset. Third, according to stock market data, foreign investors withdrew funds from the market last Thursday by selling shares worth approximately ₹847 crore; this outflow of foreign capital is exerting significant downward pressure on the Rupee. Furthermore, the Dollar Index—a metric that measures the strength of the US Dollar against a basket of six major global currencies—rose by 0.11 percent on Monday, reaching 98.26 points. What will be the impact on the common people?
The depreciation of the Rupee will have a direct impact on the pockets of the common people. This is because the cost of goods imported from abroad is likely to rise. In particular, the prices of essential commodities such as edible oils, as well as petrol and diesel, are expected to increase. Additionally, the cost of studying or traveling abroad will become more expensive. It is also anticipated that the prices of electronic goods, such as smartphones and laptops, could witness a substantial hike.