The rupee continued to face pressure due to sustained foreign fund outflows and the broad strength of the American currency in the overseas markets.
The fall in the rupee against the dollar is continuously increasing. On Monday, the rupee broke all the records. The value of the rupee fell to a historic low of 87 rupees and 29 paise against one dollar. This came as global market sentiments were impacted after the Trump administration slapped tariffs on Canada, Mexico and China. Forex traders said the Indian rupee touched a fresh all-time low on a surge in the US Dollar index and weak global markets.
What will be its impact?
First, India imports 85 per cent of its crude oil. If the rupee weakens, it will be expensive to import crude oil. This will affect the price of goods which use crude oil for manufacturing such as petrol-diesel, paint and lubricant.
Second, if goods have to be imported from abroad, then more money will have to be spent on the import of electronics products, machinery, chemicals, plastic and plastic-related products. These products may become expensive in the coming days.
Third, students studying abroad will now have to pay more money, because the child’s family ea
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