The rupee continues to fall against the dollar. On December 20, the rupee fell to the level of 85.10. The weakening of the rupee against the dollar is not only a matter of concern for the government and the RBI, but it can also create problems for the common man.
The reason for this is that it will also affect expenses like foreign travel, studies abroad, treatment abroad. Apart from this, the prices of those things in India, which we import, may increase. India imports everyday items including pulses, edible oil. Apart from this, gold and fuel are also imported.
Reasons for the fall in Indian currency
- The pressure on the rupee increased due to continuous selling by foreign investors.
- Fluctuations in crude prices also increased the troubles of the rupee.
- Dollar strengthened as a safe currency due to Russia-Ukraine tension.
- The rupee is also continuously weakening due to increasing global instability.
- Inflation in food items has put additional pressure on the rupee.
Benefit from the fall in the value of rupee
How much benefit and loss will be there due to the fall in the value of the currency of any country depends on the state of its economy. Countries that export more benefit from the fall in currency because their exports become cheaper and competitive compared to other countries.
If someone sends dollars from abroad, its value will also increase in rupees. This can also boost the tourism sector, as the cost of travelling or medical treatment will be less for foreigners.
Loss due to fall in the value of rupee
Since India imports more than it exports, there are many disadvantages of a fall in the value of the currency. For example, we will have to pay more for crude oil and gold. This will lead to a risk of further increase in inflation in the country. Foreign investment in the country may also decrease.
Many children from India go abroad to study. Their education and living expenses will also increase. Understand it this way that when the value of rupee was 70, Indian students used to get one dollar for 70 rupees. But now it will be available for 84.50 paise. The same thing will also apply to tourists going abroad for sightseeing.
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