Economy

This Is The Reason For The Rupee's Remarkable Revival Against The Dollar And For Petrol-diesel Prices Falling

Written By Digital Desk | Mumbai | Published:

The Rupee has continued its remarkable rise on Thursday, opening higher by a massive 26 paise at 72.05 per dollar, versus its previous closing at 72.31.

This means that in just the last two days, the Rupee has rallied from 72.67 per dollar on Tuesday evening -- a far cry from the record low of 74.48 that it had on October 11. 

Meanwhile, along similar lines, fuel prices continued to witness a slump in the national capital on Thursday, with petrol and diesel now being sold at Rs 77.28 per litre and Rs 72.09 per litre, respectively.

Compared to Wednesday, petrol and diesel prices witnessed a decrease of 15 and 10 paise, respectively in New Delhi.

In the financial capital Mumbai, petrol prices slipped to Rs 82.80 per litre (decrease by Rs 0.14) while diesel saw a fall of Rs 0.11 and is now being retailed at Rs 75.53.

The rates of the fuel across India have been coming down due to the fall in the prices of crude oil, which is also one of the main reasons behind the strengthening rupee. Crude is India's highest import item, and there has been a lot said about the trend in fuel prices since 2014 vis-a-vis the Indian economy. Prices had been steadily rising after initially being very accommodative, but have fallen again of late, with OPEC said to be contemplating a drop in supply amid anticipation of the global rally slowing down. This helps India with its current account deficit as well as the fiscal deficit.

The United States recently softened its stand on Iran's sanctions and given nod to eight oil countries to continue to import oil from Tehran temporarily. The list includes India, China, South Korea, Japan, Turkey, Italy, the United Arab Emirates and Taiwan. 

(With ANI inputs)

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