Rupee at Historic low: Crossed 80 mark yesterday against US Dollar

The economy watchers have highlighted the continuous fall inthe standards of the Indian Rupee in terms of the US Dollars as a huge matter ofconcern. Rupee underwent a fall for four consecutive sessions and is settled atpresent at an all-time low of 79.90, on Thursday it recovered for a meager 7paise. However, the main reason behind the development is directed toward astrong American currency overseas and the outflows of foreign exchanges.

News Agency PTI in one of its reports mentioned the rupeetook a fall of 9 paise to close at its historic low of 79.90 against the USDollar. However, Rupee breached the 80 mark briefly. Bloomberg in itsWednesday report presented the Rupee standards at 79.8788 against the Americandollar.

How does the falling Rupee impact your finance?

The Nasdaq data showed that the Indian currency hit new lows27 times in February when the Russian invasion of Ukraine took place. This includedsix times currency falling to its all-time low.

• The fact that India is an import-dependent country, willimpact Indians under inflationary pressures. It will be affecting the spendingdecision of households and they will be left with less money to spare amidsoaring prices. Since the payments of items being imported are done in dollars,a weaker rupee needs to be expensed more, which ultimately implies high pricesof the goods.
• Right away from electronics to packed food items, Indian consumerswill have to cough up extra for what they purchase. This development willimpact their expenses for foreign education and travel.
• From electronics to packed food items (prepared with oil),consumers will have to shell out more. They will also have to pay more forforeign education and travel. Education in the US has soared by 7% in the pastsix months with this development taking place, the condition of Indians abroadwill further deteriorate economically.

The onset of this development began with the RussianInvasion of Ukraine in March when for the first time Rupee hit an all-time lowof 77 since then the condition has only changed for the worse.