Indian Rupee: Rupee once again close to 80, here is the complete list of losses
The Indian rupee has once again reached near the level of 80. On Thursday, the rupee fell by six paise to 79.92 per dollar. The rupee opened at 79.80 in the interbank foreign exchange market. During the day’s trading, it was between 79.80 to 79.93 per dollar. In the end, it closed down by six paise at 79.92 per dollar. The rupee was at 79.86 per dollar in the previous trading session.
why is rupee falling
Dilip Parmar, Senior Analyst, HDFC Securities said, “The Indian rupee remained in a narrow range and underperformed other Asian currencies. Regional currencies were supported by China’s stimulus to support the economy, while a sharp rise in crude oil prices kept the local currency under pressure. The index fell 0.50 per cent to 108.13.
how much damage you
The price of Indian rupee has reached near 80 rupees against the US dollar. With imports ranging from crude oil to electronic products, foreign education and foreign travel becoming expensive, the inflation situation is expected to worsen. In such a situation, if you are thinking of buying cheap mobile phones, laptops, smart TVs and other gadgets, then there is bad news for you. Everything coming to India from abroad is now believed to be hit by inflation.
With PTI INPUT
Other imported products including petrol diesel will be expensive
The strengthening of the dollar directly affects our imports. The depreciation of rupee can bring inflation in the goods on which India is dependent on imports. This will also affect the import of crude oil. On the other hand India is also a big importer of gadgets and gems. Goods imported by India include coal, plastic materials, chemicals, electronic products, vegetable oils, fertilisers, machinery, gold, pearls, precious and iron and steel. A major depreciation in the rupee could impact the prices of these commodities.
Why is the rupee falling
In the fall of rupee, the law of demand and supply of economics applies. Every country has reserves of foreign exchange, from which it conducts international transactions. Due to rising international inflation, when a country has to spend more dollars than its vault, the demand for dollars exceeds the supply. So the rupee starts falling. At present, India is paying one and a half times the price of crude oil. On that the foreign institutional investors who are called TPPs are withdrawing huge amount of money from the Indian stock market. Due to this, while the stock market is collapsing, the rupee is also collapsing.
Another inflation hole in your pocket
The weakness of the rupee will have a direct impact on your pocket. The weakness of the rupee will further strain your pocket amid the rise in the prices of essential commodities. India buys 80 percent of its crude oil requirement from abroad. The rupee will cost more as the US dollar becomes costlier. This will make freight cost expensive. This will have a direct effect on the inflation of everything needed.
Other imported products including petrol diesel will be expensive
The strengthening of the dollar directly affects our imports. The depreciation of rupee can bring inflation in the goods on which India is dependent on imports. This will also affect the import of crude oil. On the other hand India is also a big importer of gadgets and gems. In such a situation, the effect of the fall in rupee can be seen here as well.
Impact on mobile laptop prices
India mostly imports mobiles and other gadgets from China and other East Asian cities. Most of the business for imports from abroad is done in dollars. Due to the import from abroad, now their prices are believed to be increasing. Most of the mobile assembly is done in India. In such a situation, gadgets claiming Made in India will also be hit by expensive imports.
study abroad is expensive
The impact of this will have a significant impact on Indian students studying abroad due to the weakness of the rupee. Due to this their expenses will increase. They will get fewer dollars for the money they take with them. And they will have to pay a higher price for things. Apart from this, Indians going abroad will also have to spend more.
Latest Business News
function loadFacebookScript(){
!function (f, b, e, v, n, t, s) {
if (f.fbq)
return;
n = f.fbq = function () {
n.callMethod ? n.callMethod.apply(n, arguments) : n.queue.push(arguments);
};
if (!f._fbq)
f._fbq = n;
n.push = n;
n.loaded = !0;
n.version = ‘2.0’;
n.queue = [];
t = b.createElement(e);
t.async = !0;
t.src = v;
s = b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t, s);
}(window, document, ‘script’, ‘//connect.facebook.net/en_US/fbevents.js’);
fbq(‘init’, ‘1684841475119151’);
fbq(‘track’, “PageView”);
}
window.addEventListener(‘load’, (event) => {
setTimeout(function(){
loadFacebookScript();
}, 7000);
});
,
