The rupee is making a record of falling every day… How far will it fall and what will be its effect on you?

New Delhi: Whether it is the selling by foreign investors or the increase in the prices of crude oil, its effect is clearly visible on the stock market as well as the currency market. As of now, while the stock market is falling every day, the Indian currency rupee is also making a record of falling every day. On Monday, the first trading day of the week, the rupee fell by 23 paise against the US dollar and reached a lifetime low level. Let us understand why this fall will affect the common man?

Fall in rupee is not good for the economy
The continuous fall in the rupee is not good news for the Indian economy. On Monday, the rupee fell by 23 paise against the US dollar to 86.27, which is the lifetime low level of the Indian currency. If we look at the recent decline, on the last trading day of last week, on Friday, the Rupee fell by 18 paise to close at 86.04 per dollar, while on the previous day too it had slipped and closed at 85.86 against the dollar. The fall in the currency of any country has an adverse effect not only on the government but also on the general public.

Why is the Rupee falling?
Now let us tell you why the Rupee is falling and making a new record of falling every day. At present, many reasons are seen behind this. Along with the possibility of less reduction in US interest rates, the biggest hand in this can be considered to be the continuous selling by foreign investors, which has not only increased the pressure on the market, but has also had a bad effect on the Rupee. Actually, foreign investors are withdrawing money from markets around the world and putting it in the US markets due to the strengthening dollar.

If we talk about India, then selling has been seen in the markets here. Its effect is clearly visible in the form of a fall on the Rupee. Apart from this, if we talk about other reasons, then the rising prices of crude oil can also be considered the reason behind this. Apart from this, the pressure of the possible decisions to be taken by US President Donald Trump after assuming power on January 20 is also visible on the Indian currency.

What is the effect of a weak rupee on you?
The weakening of the currency of any country has many side effects. Understand it with an example that what effect is the weakening rupee going to have on you? So suppose if one of your children is studying in another country and you are sending him money from India, in such a situation you are going to suffer a loss. Since the US dollar has the status of a global currency and it is continuously strengthening, in such a situation, whatever you send in rupees will have less value when converted into dollars. Due to this, you will now have to send more rupees than before.

Not only this, if any of your family members or relatives send you money from another country, then you are going to benefit. Now you will get more rupees for the same old amount sent. If you do business, the impact will depend on whether your business is import based or export based. Exporters are going to benefit from the weak rupee, while importers will now have to pay more rupees to order the same old quantity of goods.

The risk of inflation increases
As mentioned, when the rupee falls, imports become expensive, while exports become cheaper. It is clear that the government has to spend more rupees to buy goods from abroad. For example, if we look at the increase in crude oil prices, India currently imports most of its crude oil (about 80%), when the rupee weakens against the US dollar, the crude oil import bill increases and the government has to pay more. The effect of this will be that the prices of petrol and diesel may increase. If the prices increase, then it affects the general public in the form of inflation.