RELATION BETWEEN MINERAL OIL AND INDIAN CURRENCY RATES !

INDIAN CURRENCY RATES AND MINERAL OIL RELATION !

RELATION BETWEEN MINERAL OIL AND INDIAN CURRENCY RATES !
RELATION BETWEEN MINERAL OIL AND INDIAN CURRENCY RATES !


India is the largest importer of petroleum or crude oil from petroleum-producing nations. Countries which import crude oil including India are inverse relationship with crude oil prices.

The change in price of crude oil per barrel not only affects India's domestic currency, the Indian National Rupee (INR), but also the Indian economy.

When crude oil prices were on the rise in 2008, India's economy was very impressed and the rupee was falling against the US dollar.

In addition, the airline industry, such as the fuel industry, was forced to cut costs. The growth of India's economy would have gone down if crude oil rates were to rise further.

Despite the crude oil market, between 2009 and 2010, the Indian rupee saw an increased trend towards USD for foreign institutional investors (FIIs) due to an increased number.

As the United States economy was recovering from an international crisis in 2008, emerging countries like India and China were considered to be invested by FIIs.

Although crude oil prices were volatile during this period, they had no noticeable effect on the Indian economy and the Indian currency.


When Petroleum touched the mark of $ 71 a barrel in 2010, Trend became the witness of the reversal.


Due to the growing demand for crude oil, crude oil rates in particular increased in 2011, especially in emerging economies like China and the Middle East.


 For India's economy, 2011 was a pathetic year in which INR was seen deteriorating to record drop against Dollar. By 2013, the Indian Rupees declined due to decreasing foreign investment and continuous improvement.


The Indian economy began to recover when the price of petroleum prices started in 2014. The entire economic situation was seen in favour of the country and the primary parameters of the economy were seen moving on a right path.

When OPEC announced the reduction in petroleum production in 2016, the prices of crude oil increased substantially and thus, INR against Dollar was seen as depreciation. Falling oil prices improve the current account deficit and vice versa.


India imports more than 80% of its crude oil from Saudi Arabia, Iran, Iraq etc. and in return we pay in dollars.

If crude oil price increases, then we have to pay more money in dollar terms, we buy dollars by selling our currency (rupees) and it is one of the main reasons for falling rupee against the dollar and We know very well about where our currency is?

 In front of the dollar, it has exceeded ₹ 70 per dollar. If the cost of crude oil increases, then we have to pay more money in rupees.


India has imported crude oil worth $ 85 billion in the latest figures of 2017-2018, and due to the fall in rupee, due to the rise in crude oil consumption, this data can touch the figure of 2018-1910 billion dollars have hope.
From this graph, we help in smuggling the effects of crude oil and rupees on these events. In short, if you are concerned about crude oil and rupee and rupee, then it is so:

LOWER OIL PRICES MEAN:

  1. Less imported inflation
  2. Less subsidy burden for the government
  3. Low cost of goods transport
  4. This reduces the actual expenses of homes, which are positive for consumption.

Therefore,

 we can conclude that lower oil prices support lower inflation and high growth. It has been said that it helps attract foreign capital inflows into debt and equity markets in India and hence it is positive for rupee.


thanks for the time .

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