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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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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

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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Russia Ukraine War Live Updates: Russian military action will stop in a moment is Ukraine meets conditions, says Kremlin

2024 Lok Sabha Elections

Farooq Abdullah accuses PM Modi of trying to divide the country over religion

Faroukh Abdullah reacted to PM Modi’s remark that the Congress will redistribute people’s money and property to Muslims if voted to power and said Muslims respect all religions. He said that they are Muslims and Allah has told them to respect other religions. He further added that a Muslim cannot snatch anyone’s right.

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Farooq Abdullah, Jammu and Kashmir’s National Conference President said on Wednesday that Prime Minister Narendra Modi was trying to divide the country over religion. He also said that those who will vote for them must prepare for hell. Farooq Abdullah said Muslims cannot snatch away the rights of others.

Farooq Abdullah also called Prime Minister Narendra Modi-led government a threat to the survival of the country. Omar Abdullah, former Jammu and Kashmir chief minister cautioned the people not to divide this country on the basis of religion, otherwise a storm will unleash making the survival of the nation difficult. He said it is better to talk about uniting the country, instead of dividing its people.

He was addressing an election rally in Thanamandi area of the Rajouri district in Jammu and Kashmir. The Anantnag parliamentary constituency will go for elections on May 25. Faroukh Abdullah reacted to PM Modi’s remark that the Congress will redistribute people’s money and property to Muslims if voted to power and said Muslims respect all religions. He said that they are Muslims and Allah has told them to respect other religions. He further added that a Muslim cannot snatch anyone’s right.

He remembered an incident when former Prime Minister Rajiv Gandhi once stopped his car in Pulwama and assured a poor Hindu woman that he would give her a mangalsutra as she could not afford it. Farooq Abdullah said those who were against the INDIA bloc are against the nation.

Prime Minister Narendra Modi had earlier sparked a controversy last month as he commented that the Congress would take away the hard-earned money of the masses and distribute them among infiltrators and those with many children.  Speaking at a rally today, the Prime Minister took a jibe at the Congress and said the governments in the past were not able to implement the Indian Constitution in Jammu and Kashmir. He was referring to the revocation of Article 370.

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Karnataka CM Siddaramaiah writes to PM Modi, urges home ministry to cancel diplomatic passport of Prajwal Revanna

CM Siddaramaiah wrote in the letter to PM Modi that he must be aware of the serious case of alleged sexual exploitation of a number of women by the sitting Hassan Lok Sabha member of Parliament (MP) and the NDA candidate, Prajwal Revanna, for the same constituency for the  ongoing 2024 Lok Sabha elections.

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Karnataka Chief Minister Siddaramaiah on Wednesday wrote to Prime Minister Narendra Modi, where he urged the Home Affairs Ministry to cancel the diplomatic passport of Prajwal Revanna. Earlier a day before Revanna was suspended by JD(S) amid a row over explicit videos. Revanna is believed to have escaped to Germany shortly after the first phase of elections ended in Karnataka on April 26, in which he was JD(S)-BJP’s candidate from Hassan.

CM Siddaramaiah wrote in the letter to PM Modi that he must be aware of the serious case of alleged sexual exploitation of a number of women by the sitting Hassan Lok Sabha member of Parliament (MP) and the NDA candidate, Prajwal Revanna, for the same constituency for the  ongoing 2024 Lok Sabha elections.

The Karnataka Chief Minister wrote in letter that the Congress government in Karnataka has constituted a Special Investigation Team to investigate the allegations against Revanna. The SIT is working day and night to investigate the allegations of crimes against several women by Prajwal Revanna and getting him back to the country is of utmost importance so that he faces investigation and trial as per the existing law of the land.

Siddaramaiah urged PM Modi to move the Home Ministry to take swift action to cancel the diplomatic passport of Prajwal Revanna and appropriate action must be taken using diplomatic and police channels of the Government of India as well as international police agencies to ensure the swift return of the absconding member of parliament to face the existing law of the land.

Suspended JD(S) leader Prajwal Revanna, accused of sexually assaulting multiple women, broke his silence on Wednesday and said that truth will prevail soon. In his first response since the controversy erupted, Prajwal Revanna said on X that he is not in Bengaluru currently and has communicated the same to CID.

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Amit Shah says BJP will neither remove reservation for SCs, STs and OBC, nor will allow Congress to do so

The Home Minister alleged that the Congress’ formula was to speak lies loudly, publicly and repetitively. He advised Congress president Mallikarjun Kharge not to speak lies for a family as eventually he will have to take the blame for the party’s loss in the Lok Sabha elections

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Union Home Minister Amit Shah on Wednesday continued to attack Congress over reservation row. He was addressing a rally in Katghora town of Chhattisgarh’s Korba district to campaign for Saroj Pandey, BJP candidate from the Korba Lok Sabha seat where Shah said BJP will neither remove reservation for SCs, STs and OBCs, nor will it allow Congress to do so.

The Home Minister alleged that the Congress’ formula was to speak lies loudly, publicly and repetitively. He advised Congress president Mallikarjun Kharge not to speak lies for a family as eventually he will have to take the blame for the party’s loss in the Lok Sabha elections. Shah accused Congress of nurturing terrorism and Naxalism to win the Lok Sabha elections.

Shah further added that Congress claims if Prime Minister Narendra Modi ji gets majority for the third term, he will scrap reservation. He said the grand old party has even circulated his fake video. Shah said that have been in power for the last 10 years and PM Modi did not remove reservation, nor will he do it in the future.

The Union Home Minister further asserted Modi ji used the majority to scrap Article 370 and triple talaq, construction of Ram Mandir in Ayodhya and introduce the Citizenship Amendment Act. He further told the Congress President Mallikarjun Kharge that Rahul Gandhi and Priyanka Gandhi do not belong to anyone. He said on June 4 Congress will suffer defeat and the brother-sister duo will remain safe, but Kharge ji will be blamed.

Shah further asserted if PM Modi becomes the prime minister for the 3rd straight term, then Naxalism will be uprooted in two years in Chhattisgarh.  Shah targeted the previous Bhupesh Baghel-led government in Chhattisgarh and said, The Bhupesh Kakka government encouraged Naxalism, but after the BJP came to power in the state under CM Vishnu Deo Sai and Deputy Chief Minister Vijay Sharma 95 Naxalites have been eliminated in 4 months.

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