Depreciation of Rupees, Weighs High on Indian Economy

The fall in the value of rupees against US dollar has been continuing jolting the economy, which has already been facing the music of economic slowdown. The rupees is around 63 against the US dollar and 100 against GBP (Great Britain Pound). The depreciation of rupees has been affecting the household budget of all the people of India including poor, middle class and rich.

The government has been trying to bring stop the bleeding rupees in the currency market, but it seems that it is big challenge to keep the loss in short-term. To check the loss, the apex bank has changed most of it policies over the liquidity, gold import and investing in abroad.

But the result seems unchanged from the earlier scenario. The prices of the fuel in India are directly being affected with the value of rupees in the international currency market. And change in its value is enough tumble the prices of petrol and diesel in India. Once the rupee was at 35 against the US dollar, but now the scenario is just opposite.

As a custodian the apex bank would make further changes in its mechanism to stop the loss of the value of rupees in the international currency market. On the other hand, the political factor and food security bill introduction could be the major setback for the economy; those pushed the rupees against US dollar to a new low.

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Indian Rupee slides to 58.30/USD

Not good news for the investors in Asian region as the India rupees hit all-time low of 58.30 against USD, in the opening trade on Tuesday. The fall in the value of rupees against US dollar would be the major concern for the investors in India.

Certainly, the import costs would go up weighing high on the Indian economy. In short-term the trade deficit would be at the its peak as the balance of payment might be disturbed with the high rate of US dollar against Indian rupees.

India parents would be more concerned if the children as studding in US as they need to pay more for the education fees. And the fall in the value of rupees also not a good sign for commonmen as the price of petrol and diesel could go up soon.

With the high international crude pride due to the high dollar value, Indian oil companies may go to hike the retail price of petrol and diesel ,which ultimately would be a big burden the consumers – the commonmen.

The rupee was closed at 58.15/16 against US dollar in the international currency market. Further slide in the value of the rupees could tumble the economy. However, the high dollar value a good sign for the IT and export companies, those have been getting their payments in US dollars.

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Rupees recovers and ended at 44 against US Dollar

Strong foreign fund flow made rupee bit stronger by one paise in the currency futures market on Tuesday. The fall in Euro was however a concern for the market and investor but proved strong point for Indian currency rupees.

On Tuesday, rupees ended at flat at 44 per dollar. The rupees has also witnessed the lowest rate of 44.53 and highest of 44.28 in the intra-day trading at the currency futures market.

The demand for the rupees at the currency futures market has been volatile and depending on the flow of the foreign fund into the market.

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