It’s been a long since the value of rupee falling against the dollar. A fall of more than 6% marks the value of rupee against the dollar. Though 2018 witnessed a serious decline last few days are a massive change in the face of the Indian economy.
Rupee Falling Against Dollar – Sneak Peak
The rupee slumped to a value of RS 74.50 as compared to a dollar on 11th October 2018. But now the Indian currency is on a recovery phase with a minute 38 paise rise against the dollar today. Owing to the ease in the prices of crude oil, the forex market witnessed an increase in the value of rupee against dollar.
Also, the exporters of the dollar and the banks, the weakness of greenback against several currencies helped rupee recover against the dollar. However, the major reason of rupee raising by a 38 paise mark is the fall of Brent crude oil price. A 3% reduction of the same accounting for trade price of a single barrel is 80.37.
The forex department, on the other hand, owes the strengthening of the rupee to be the result of the higher opening of the equity market today.
Aftermath Of The Gradual Decline Of Rupee
Though rupee falling against the dollar is a trend nowadays, the former is trying to combat the fall, yet a huge transition has ruptured the Indian market. Crude oil, fertilizers, iron ore, and medicines as imported are costlier. Of course, you don’t consume these on a daily basis, yet it has a drastic impact on Indian finances.
Apart from the dollar rate, there is a massive rise in the price of both petrol and Diesel. Around 70% of the curve oil is imported overseas. A weak rupee will challenge the BJP government to take a call. Another major commodity imported in colossal quantity is the crude palm oil. A change in rupee against dollar value will directly affect the value of crude palm oil. This, in turn, boosts the price of edible oils used in our daily need.
The fast-moving consumer goods or the FMCG such as the soaps, detergents, deodorants, and shampoos, which has crude oil as it’s input, will also witness a massive rise in prices.
One of the most substantial imports of India, Pulses, and oil, also face a higher risk of increased prices. Students opted for a loan to waive their foreign degrees will also suffer. The corporate world that relies on exports will pay less to its workers.
If you are planning a vacation abroad, then this is not the right time. Airfares are at its peak with rising in fuel surcharge. The stay, the shopping, the food all need an extra amount. A fall of rupee has a dramatic effect on all sectors of life.
What’s next In Rupee falling against the dollar?
#RupeeAt73 India should have no doubt today in accepting that Narendra Modi is India's worst PM in its history. Modi not only destroyed back bone of Indian economy but the social fabric of country.Master in hypocrisy &double standards,Modi is king of lies who fool it's own people
— Shivam (@ShivamJ24) October 3, 2018
Though the day saw a rise in the rupee, yet a 38 paise steak is nothing as compared to a considerable transition made. And all of this raises the question on the government. The ache din does not seem to be too ache. Modi government said it would shape India. And yes, it is definitely, but the odds stay in favor of the Government and not the public.
In such as scenario of rupee falling against the dollar, will the Indian Janta reelect BJP or take a firm stand?
Stay tuned and see what the 2019 Lok Sabha election beholds.