INR hits all time low ,what does it means and what are the effects

[anshukota]

In morning trade, the currency breached the 69-mark.
WHAT MAKES A WEAK RUPEE

1. The slump in the currency has its roots in concerns over high crude oil prices. Oil prices in the global market inched up further with US crude futures rose $.23 to settle at $72.76 a barrel. Brent crude rose $1.31 to settle at $77.62 a barrel.
2. The currency market was nervous after RBI painted a gloomy picture of the banking sector in its bi-annual financial stability report.
3. Currency traders are also worried about the future of global trade against the grim backdrop of an escalating trade rhetoric between the US and China.
4. A massive selloff in domestic equities further added pressure fearing heavy capital outflows.

HOW A WEAK RUPEE AFFECTS YOU

1. While a weakening rupee will mean Indian exporters are left smiling, importers however, will feel the heat.. According to latest government data, India's trade deficit stood at $14.6 billion in May, 5.6 per cent higher than a year ago. A falling rupee will only widen this gap.
2. As imports, especially oil imports get costlier, it could translate into higher fuel costs, which will raise, or at least keep the pressure on the overall cost of economic activity. An inflationary pressure may add to Reserve Bank of India's (RBI) woes and result in a further hike in key interest rates.
3. The erosion in rupee's value has adversely hit the bond market too. The 10-year benchmark bond yield shot-up to 7.87 per cent from 7.83 per cent on Wednesday.
4. For those travelling abroad as tourists or Indians studying abroad, fall in rupee's value would mean a higher cost of living.

Comments

[yashgupta]

Its devastating to hear rupee value is soo much down, I dont know what should we do in these situations. Can you suggest somethings @ashukota

[steemitvkey24]

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[cheetah]

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[jatinkkalra]

very bad news mate!

[chetan1998]

Thanks for posting.

[karan.work77]

Its good for the exporter in India but not good for Indian...

[aman1595]

This is not a good news for the economic conditions of India. If the price of USD is high it affect the whole economy

[guggis]

Week rupee has some positives as well, exports get profitable.
Also those who holding crypto will get more rupee.
But yes i favour for a stonger rupee

[himanitokas]

Things will become difficult for students

[rishad19]

does the price affect the reserve???

[jigsindian]

its coz of world trade war

[dheerajbhardwaj]

This is India

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[dhanjkalita]

You're article is very informative. INR is getting weaker day by day against USD. That's not a good sign for our economy