Federal Reserve System Interest rates hike INR down compare to USD 2022

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Federal Reserve System Interest rates hike INR down compare to USD 2022

Federal Reserve System Interest rates hike – The whole world is currently facing an economic crisis and even developed countries like America have not been able to escape from it. Under this, the Federal Reserve System of America has increased its interest rates by 0.75 percent and this is the third time. This is the first time in US history in the last 20 years that the US dollar has crossed the euro.

Federal Reserve System Interest rates hike INR down compare to USD 2022

By doing this result was that the inflation rate in America has not been reduced, it is still the same as it was before. But due to this, the level has fallen very low against the other currencies of the world.

If we talk about India’s rupee itself, then this time it was at a record low, which came down to INR 81.18 on Friday against $1. But later, taking cognizance of this by the Reserve Bank, it closed at a slightly lower level and strengthened slightly.

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What will be the effect of this hike in India?

Along with this, we can say that due to the continuous increase in interest rates in America, investors are withdrawing their money, and investing it in American dollars. Because they know that the value of the US dollar is rising and they see it as a good investment for their future.

Federal Reserve System Interest rates hike INR down compare to USD 2022

Indian Stock Market down report

But what will be its effect in India, as soon as the rupee falls against the dollar, then its direct effect is first visible on the stock market, which we also came to know from the stock market report of the last 3 days. From Wednesday to Thursday, there was a tremendous decline in the Indian stock market. The shares of big companies were seen going down.

SENSEX 58,098.92 – The SENSEX closes with a down of 1.73% and this decrease is of 1020.80 INR. Similarly, the down continues on Nifty 50 and bank nifty. NIFTY 17,327.35 -302.45 (1.72%). BANKNIFTY 39,546.25 -1,084.35 (2.67%).

Business losses due to INR down and USD increase

Along with this, if you do the business of import-export due to the increase in the dollar value, then you are going to be directly affected because if you do the work of export then you can also benefit from it, and if you do the work of import from other countries, you will suffer a loss under it. Because you will pay more money in Indian Rupees for the same goods now because of the dollar going up.

Inflation rate hikes with the passage of time

Along with this, it has also been seen from independence till now that inflation has never come down, it is continuously big and it happens to everyone. Because as time changes, it is natural for things to increase. We call it the inflation rate or the ups and downs of the economy.

Possible reasons for an inflation rate hike

At the same time, according to the recent situation of the world, if we look at it, due to the increasing demand for energy and the decrease in the appropriate resources which can meet this demand for energy, there has been an increase in the inflation rate.

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India Stronger economy than Britain in 2022

It is a different matter that India has become the fifth largest economy by overtaking Britain this month, but if we talk about America, America is going through the highest inflation rate in its last 41 years. One reason for this is the increase in energy resources and the shortage of crude oil can also be considered.