Thursday, May 16, 2024

Measures to prevent budget deteriorating due to continuous weakening of rupee

Rupee vs Dollar

Rupee vs Dollar: Imports will be expensive due to fall in the value of rupee.

Rupee has once again come down to its lowest level on Monday, 26 September. It weakened even during the third consecutive session. Fears of a slowdown globally and the continuous increase in interest rates by the US Federal Reserve are strengthening the dollar index and the rupee is slipping.

Rupee vs Dollar

Understand how a falling rupee can affect your life.

According to Bloomberg, the rupee, which was earlier at 81.5675, fell to a new record low of 81.5225 during trading on Monday to 81.6612. This is also the lowest level of Rs.

At the same time, according to PTI, the rupee fell 54 paise to close at a record low of 81.63 against the US dollar. Last week Thursday and Friday the rupee had closed at its all-time low and today it has reached a record low for the third consecutive session.

Talking to Economic Times, Mohit Nigam of Hem Securities said that “Rupee will see further decline, US Fed has made it clear to bring inflation under control that interest rates will be hiked. In such a situation, the rupee will rise to 83″. Can even touch the figures.”

What is the position of Rs.

Rupee has crossed the level of 81.5. Till April 2022, the rupee was trading around 76, which crossed the figure of 77 in May, 78 in June, 79 in July and 80 in September.

Why is rupee falling?

The story of the fall of the rupee had started in Corona. When the business-industry all over the world had come to a standstill, after which the supply chain was disrupted. After the lifting of the lockdown, when the supply could not meet the demand, there was a big jump in the prices.

Even a developed country like America could not control this inflation, so the US Fed raised interest rates. Just since then, foreign investors are withdrawing money from the Indian market and investing in America.

Investors pulling money from the Indian market and markets around the world increased the demand for dollars, due to which the world’s currency started weakening. Many investors started investing in dollars, after which the dollar has reached its 20-year high. The strengthening dollar weakened the rupee. Because when the demand for the dollar increased, the demand for the rupee decreased and so did its value against the dollar.

How will the falling rupee affect everyday life?

  • Imports will be expensive – Imports will be expensive due to the fall in the value of the rupee. If any goods are imported, then the duty on it will increase. Suppose you were buying a pen from abroad for 1 dollar earlier for 75 rupees. Now because the rupee has come to 81.5 against the dollar, then the same pen of 1 dollar will cost you 81.5 rupees.
  • Foreign travel will be expensive – Those who dream of traveling abroad may have to increase their budget further because when they go to convert rupees into dollars, they will have to pay more rupees.
  • Studying abroad will be expensive – fees and living expenses of those studying abroad will increase. Those going abroad for treatment will also have to spend more.

What can investors do if the rupee is falling?

Rupee has crossed the figure of 81.5. In such a situation, what is the advice for investors, before knowing that the common man can be saved. The biggest impact of falling rupee is on inflation. India imports more than it exports and in case of rupee slipping, the imported goods become expensive.

Economist Sharad Kohli says that although it is not easy for the common man to avoid this inflation, but if they use indigenous goods, then to some extent buying expensive goods can be avoided, although he says that in many indigenous goods The raw material used also comes from abroad.

Will have to return to investments that give fixed returns

In a conversation with The Quint Hindi, Sharad Kohli says that at this time there is neither an opportunity to earn money from the stock market nor to invest in gold, but at such a time, investors can once again move towards investments that give fixed returns.

Fixed return products such as government or corporate bonds or bank deposits. Banks are currently giving 7 to 8 percent returns on FDs to senior citizens. In the coming days, the Reserve Bank will once again increase the interest rates, in such a situation investing in the schemes of the bank is not a bad option either.

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