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Amid Russia Ukraine war, Indian rupee declines to an all-time low against US dollar: How does US Dollar determine the value of Indian currency? All you need to know

India is one such country that is primarily affected by Russia’s invasion of Ukraine. The Indian rupee fell to a record lifetime low of 76.97 against the US dollar.

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India is on the path to becoming the world's leading consumption economy, as household growth, tax reforms, and a booming Gen Z population fuel discretionary spending.

The ongoing Russia Ukraine war has not impacted just these two countries’ GDP but also affected the economy globally. India is one such country that is primarily affected by Russia’s invasion of Ukraine. The value of the Indian currency has declined to an all-time low.

The Indian rupee fell to a record lifetime low of 76.97 against the US dollar. It’s due to a significant increase in international crude oil prices, which has threatened to raise imported inflation and deepen the country’s trade and current account deficit.

Global crude oil prices were nearing record highs after reports said that the US and its European allies are considering barring Russian oil imports in response to the country’s invasion of Ukraine. Brent crude oil hit a high of USD 139.13 per barrel, before easing a bit.

Which is the most powerful currency in the world and how does it determine the value of other currencies?

US dollar is the most powerful currency in the world. All the trading in the world is done in US dollars. Each country has its own currency and its value is determined by the economic concept of Demand and Supply.

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The value of a currency that is in higher demand has a higher value. The value of a currency is determined by economic factors such as trade, inflation, employment, interest rates, growth rate, and geopolitical situations.

The concept of currency fluctuation is part of the larger Foreign exchange market.

What is Foreign Exchange Market?

The Foreign Exchange Market is mainly a global market for currency trading. One currency is exchanged for another at a particular rate. The rate at which two particular currencies are exchanged is called the exchange rate.

The value of one country’s currency in relation to another country’s currency is known as the exchange rate.

How does US Dollar determine the value of Indian currency?

The US dollar is in high demand because India imports more goods from the US than it exports. The demand for the US dollar will rise in this situation because more dollars will be paid to the US while purchasing products from them.

To pay for these goods, more dollars will have to be purchased on the foreign exchange market in India. As a result, demand for US dollars will rise compared to the Indian rupee, boosting their value.

Read Also: Russia Ukraine War: These pictures of Ukrainian children caught in midst of war will break your heart

However, if the Indian Rupee’s value plummets dramatically, the government will step in. They will aim to decrease the supply of Indian rupees immediately to compensate for the low demand. They will purchase the Indian rupee on the market with US dollar reserves. As it buys more Indian currency with US dollars, the supply of Indian currency falls while the supply of US money rises, resulting in an increase in the rupee’s value and a reduction in the dollar’s value.

If the oil prices keep increasing at this rapid rate then the Indian currency could head towards 79 per dollar soon.

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G Parameshwara likely to be deputy CM in DK Shivakumar-led Karnataka government

G Parameshwara is expected to be appointed Deputy Chief Minister as the Congress finalizes the cabinet for the incoming DK Shivakumar-led Karnataka government.

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Senior Congress leader and Karnataka Home Minister G Parameshwara is likely to be appointed Deputy Chief Minister in the new government led by DK Shivakumar, according to sources familiar with the ongoing discussions within the party. The move is seen as part of the Congress leadership’s efforts to ensure social and regional representation in the state’s new political setup.

The development comes as DK Shivakumar prepares to take oath as Karnataka’s Chief Minister following his election as the leader of the Congress Legislature Party after Siddaramaiah’s exit from the top post. The swearing-in ceremony is scheduled to take place in Bengaluru on June 3.

Parameshwara is one of the most prominent Dalit faces in Karnataka Congress and has held several important positions in the party and government over the years. Party leaders have reportedly been engaged in consultations over the composition of the new cabinet and the distribution of key positions ahead of the swearing-in ceremony.

The Congress leadership has been working to finalize ministerial appointments and balance representation among various communities and regions. Reports have also suggested that multiple deputy chief minister positions were under consideration as part of the broader cabinet formation exercise.

High-level meetings involving DK Shivakumar, Siddaramaiah and senior Congress leaders have taken place in New Delhi in recent days to finalize the structure of the new government. The discussions have focused on cabinet composition and organizational appointments ahead of the transition.

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CBSE chairman and secretary transferred as Centre orders probe into OSM irregularities

The government has transferred CBSE’s top two officials and ordered an investigation into alleged irregularities in the procurement and implementation of the On-Screen Marking system.

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The Central Government has transferred the chairman and secretary of the Central Board of Secondary Education (CBSE) and constituted a committee to investigate alleged irregularities linked to the board’s On-Screen Marking (OSM) system.

The move comes amid growing concerns over the digital evaluation process used for Class 12 board examinations this year. Several students who sought access to scanned copies of their answer sheets reportedly claimed that the documents uploaded on the verification portal did not match their actual answer books. CBSE officials have acknowledged that around 20 cases involving answer-sheet mismatches were identified during the evaluation process.

Concerns over evaluation system prompt government action

The OSM system was introduced for the evaluation of Class 12 board examinations, replacing the traditional physical checking process with assessment of digitally scanned answer sheets. While the board had defended the technology-driven system as a step towards modernising evaluations, complaints emerged after the declaration of results.

Students and cybersecurity experts also raised concerns regarding technical issues on the portal. Complaints included answer-sheet mismatches, blurred scans, missing pages and payment-related failures during the verification process.

In response to the controversy, the Centre has ordered a probe into the procurement of OSM-related services. Reports indicate that the inquiry will examine whether there were any procedural lapses or irregularities in the procurement process associated with the digital evaluation system.

OSM system faces wider scrutiny

The issue has attracted attention beyond administrative circles. A parliamentary panel has reviewed concerns related to the OSM system, while legal challenges have also been filed seeking examination of the evaluation process.

Earlier, Union Education Minister Dharmendra Pradhan had acknowledged discrepancies in the system and assured students that corrective measures would be taken. He stated that concerns raised regarding the evaluation process would be addressed and action would follow if any wrongdoing was found.

Despite the controversy, the government has maintained that digital evaluation remains an important part of the future of assessment and that the overall framework of the OSM system is likely to continue, subject to reviews and improvements.

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Ghaziabad seals illegal madrasas as Operation Clean Sweep targets crime and encroachments

Ghaziabad authorities have launched Operation Clean Sweep, a large-scale anti-crime campaign that has led to action against repeat offenders, illegal encroachments and unregistered madrasas.

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The Ghaziabad Police and district administration have launched a large-scale enforcement campaign named Operation Clean Sweep, focusing on criminals, repeat offenders, illegal encroachments and unregistered institutions across the district.

The operation comes in the wake of heightened law enforcement activity following the murder of teenager Surya Pratap Chauhan in the Khoda area. Authorities have increased surveillance and verification drives while deploying additional security personnel in sensitive locations.

Security intensified across Khoda

Officials have deployed police teams, drone cameras, sniffer dogs and other surveillance equipment to monitor vulnerable pockets of Khoda. Rooftops and key locations are being watched closely as authorities seek to prevent any law-and-order issues.

According to police officials, repeat offenders have been identified and action is being initiated against them. Multiple teams are also carrying out searches and verification exercises in the locality.

Hundreds of offenders under verification

District authorities said a large number of individuals with criminal backgrounds have been identified across Ghaziabad as part of the campaign. Officials are reviewing records, conducting field verification and examining cases involving illegal occupation of land or other violations.

The administration stated that notices would be issued wherever illegal encroachments are found, following due legal procedures.

Three unregistered madrasas identified

As part of the drive, authorities identified three madrasas that were allegedly operating without recognition from the Madrasa Board. One of them, Madarsa Rehmaniya, was sealed after officials found that it was not registered with the relevant authorities, according to the district administration.

Officials have issued notices and provided time for the management to submit responses before further action is taken. Authorities said the verification of educational and other institutions will continue in the coming days.

Drive to continue

The administration has indicated that Operation Clean Sweep will continue as part of a broader effort to curb criminal activity, strengthen law enforcement and verify properties, tenants and institutions across the district.

Officials said the campaign is aimed at ensuring compliance with legal requirements while enhancing public safety and maintaining order.

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