Impact of the Ukraine-Russia war is now visible on the Indian economy, Rupee weakens against dollar
In the fierce battle going on between Ukraine and Russia, where thousands of Indian medical students are stranded in Ukraine, they are being brought back to the country safely under Operation Ganga. On the other hand, India’s economy is also being seen to have a significant impact on it. In the past, the rupee has seen the biggest fall in two and a half months against the US dollar. By the way, the rupee was already weak against the dollar and has become even higher in a few days. The value of one dollar is now ₹77. Even before this, the rupee had reached 75.91 against a dollar at the end of last year. But again down immediately it was gone.
After the initial fall and volatility in the dollar-rupee, traders are also facing a lot of economic risk. At the same time, investors’ troubles have increased even more after reports of Russian military attacking a nuclear plant in Ukraine.
Currency traders believe that the market will remain very volatile till the war is over. The rate of inflation has increased significantly and unless the RBI intervenes itself, the chances of the rupee going forward are slim.
India imports more than two-thirds of the oil it consumes. In such a situation, due to increase in the price of crude oil, there is a lot of fear of increasing the trade current account deficit of the country and further depreciating the rupee.India buys things ranging from cooking oil to fertilisers and nuclear reactors from Ukraine. India has very good trade relations with Ukraine and Russia. In such a situation, for as long as the Ukraine-Russia war lasts, it is bound to have an effect in India in the form of inflation.
