Rupee Falls by 21 Paise Against the Dollar

Mumbai. The exchange rate of the rupee against the US dollar saw a decline again today. The rupee weakened by 21 paise, pushing the value of one US dollar to 95.28 rupees. When trading began in the currency market on October 28, the dollar opened at 95.01 rupees.

Although there were expectations that the rupee might strengthen—driven by measures taken by the Reserve Bank and a strong response to the IPO of a major company—the exchange rate instead fell by 21 paise.

The strengthening of the dollar in the US and internationally, combined with a rise in global crude oil prices, has increased pressure on the rupee’s exchange rate.

While a weaker rupee is often expected to improve export performance, it simultaneously makes imports from abroad more expensive. The Reserve Bank is currently making efforts to stabilize the rupee’s exchange rate.