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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.

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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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PM Modi links Gen Z support to BJP’s Mumbai civic win, targets Trinamool in Bengal

PM Modi said India’s Gen Z believes in the BJP’s development agenda, citing the party’s historic BMC victory while attacking the Trinamool government in Bengal.

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PM Modi

Prime Minister Narendra Modi on Friday said India’s Gen Z believes in the BJP’s development model, citing the party’s landmark victory in the Brihanmumbai Municipal Corporation elections, as he intensified his campaign in election-bound West Bengal.

Addressing a public meeting in Malda, the prime minister pointed to the BJP’s record performance in Mumbai’s civic polls, where the party emerged victorious in the BMC for the first time. He expressed confidence that voters in West Bengal would make a similar choice in the upcoming assembly elections, which are due in a few months.

Taking aim at the Mamata Banerjee-led Trinamool government, Modi said in Bengali, “Ei sarkar palano dorkaar,” asserting that the state needs a change in government. He accused the Trinamool of corruption and alleged that public funds were being looted while central assistance was being blocked from reaching people in Bengal.

The prime minister said development in the state would accelerate only after the Trinamool is voted out and the BJP comes to power. He also accused the ruling party of shielding infiltrators, warning that strong action would be taken against infiltration if the BJP forms the government in the state.

Reassuring the Matua community and other persecuted refugees from neighbouring countries, Modi said they had nothing to fear, adding that the Citizenship Amendment Act offers them protection.

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Rahul Gandhi to visit Indore over contaminated water deaths, draws mixed political reactions

Rahul Gandhi is set to visit Indore to meet families affected by contaminated water deaths as BJP and Congress leaders exchange sharp yet contrasting responses.

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Rahul-Gandhi

Leader of the opposition in the Lok Sabha Rahul Gandhi is scheduled to visit Indore on Saturday amid mounting political and public concern over deaths linked to contaminated drinking water in the city. His visit has triggered varied responses from political leaders, reflecting the tense atmosphere surrounding the issue.

According to the proposed itinerary, Rahul Gandhi will begin his visit at Bombay Hospital, where several people affected by contaminated water are currently undergoing treatment. He is expected to meet patients and their families before proceeding to Bhagirathpura, the area identified as the epicentre of the crisis. There, he will interact with families who lost relatives after consuming contaminated water.

BJP veteran welcomes visit, stresses democratic role of opposition

Former Lok Sabha Speaker and senior BJP leader Sumitra Mahajan welcomed Rahul Gandhi’s visit, adopting a conciliatory tone and underlining the importance of opposition voices in a democracy.

“This is how democracy works,” Mahajan said, adding that the opposition has a responsibility to raise issues affecting the public. She recalled that when her party was in the opposition, it fought strongly to earn people’s trust by standing with them during difficult times.

Chief minister warns against ‘politics over tragedy’

In contrast, Madhya Pradesh Chief Minister Mohan Yadav issued a sharp warning without naming Rahul Gandhi directly, cautioning against what he described as politicisation of a tragedy.

“We have faced this difficult phase with sensitivity,” the chief minister said. He added that Indore would not tolerate politics being played over deaths and stressed that protests must remain constructive, warning of serious consequences if the issue is used for political gain.

Closed-door meeting fuels political discussion

Adding to the political churn, Madhya Pradesh Congress president Jitu Patwari met Sumitra Mahajan at her residence in a closed-door meeting. The discussion focused on the Bhagirathpura water contamination incident and possible long-term solutions, fuelling speculation across political circles.

Speaking to the media later, Patwari said the tragedy should not be turned into a political contest. “This is not just a political issue, it is a serious public health issue,” he said, noting that several parts of Madhya Pradesh are facing problems related to contaminated drinking water.

Patwari stressed that ensuring access to clean and potable water should take precedence over political rhetoric. He said the government must focus on protecting Indore’s reputation and safeguarding the future by strengthening the city’s water supply system.

Responding to queries, Sumitra Mahajan said Patwari had been meeting her for a long time and spoke positively about his efforts. She confirmed that the discussion centred on the Bhagirathpura incident and said she offered suggestions, calling for collective efforts to resolve the crisis.

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Suvendu Adhikari files Rs 100-crore defamation suit against Mamata Banerjee

Suvendu Adhikari has moved an Alipore court seeking Rs 100 crore in damages from Mamata Banerjee, alleging defamation over coal scam claims.

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Suvendu-Adhikari

West Bengal opposition leader and BJP MLA Suvendu Adhikari on Friday filed a defamation suit against Chief Minister Mamata Banerjee, seeking Rs 100 crore in damages for allegedly linking him to a coal scam.

In a post on social media, Adhikari said the suit was filed before the court of the civil judge (senior division) at Alipore after Banerjee did not respond to a legal notice sent to her earlier.

Adhikari accused the chief minister of making what he described as “imaginary allegations” and said her silence on the defamation notice had compelled him to move court.

“I honour my commitments while you obfuscate issues and people. Your deceptive silence to the defamation notice pertaining to your vile imaginary allegations of my involvement in some alleged coal scam will not help you salvage the situation,” Adhikari wrote on X.

He added that he had kept his word of initiating legal action and shared a photograph related to the registration of the civil suit.

Adhikari also stated that if damages are awarded in his favour, the amount would be donated to charity.

Legal notice and allegations

According to Adhikari, the legal notice sent through his advocate referred to statements made by Banerjee on January 8 and 9, during which she allegedly linked him and Union Home Minister Amit Shah to an alleged coal scam while claiming to possess evidence.

In the notice, Adhikari had asked Banerjee to substantiate the allegations within 72 hours, failing which he would proceed with a defamation suit.

Adhikari, who was earlier a minister in the Trinamool Congress government, joined the BJP ahead of the 2021 West Bengal Assembly elections and is currently the leader of the opposition in the state assembly.

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