The rupee is on a free fall and hit 65 against the dollar yesterday. Today it has pulled back a little but the losing streak is likely to return any time in the near future. If you think that only the government and business men, and companies need to worry, think again. This fall in rupee will affect you in more ways than you think.
1) Imports will become expensive:With the fall in the rupee, now importers will have to part with Rs 65 for every US dollar. A year back, they had to only shell out Rs 50. So obviously they will have to pay more for imports. This means if you wan to buy imported goods, they will cost you more. So, from right from foreign cheese to mobiles, electronic items and other imported items are going to be expensive.
2) Your budget will go for a toss: In fact, the fall in rupee will also make crude oil expensive, eventually making fuel expensive, this will increase cost of transport, and this cost will be eventually be passed on to you via inflation, making your household budget got for a toss.
3) Cars to be expensive: Auto industry imports many parts and components from abroad, the fall of rupee will hurt the already hurting automobile industry, making cars more expensive in the future.
4)Travelling abroad:For those travelling abroad, you may simply want to defer your plans for later, or go for a vacation to some place in India. You will land up paying more for everything, right from air tickets, hotel reservations and of course shopping.
5) Studying aboard: For Indian students abroad, the pain just aggravates. Earlier, if you could get $2 for Rs 100, now you will have to pay Rs 30 more to get the same amount of dollars. The only way out will be to take a loan from family and friends or dig into own savings to meet the funding gap between your education loan amount, and actual total cost.
6)Job loss:The declining economic growth is also resulting in job losses. Sectors like auto have already started laying off and production is being cut with demand falling.
7) Good times: A fall in rupee is good for exporters, since they will make a few more bucks. The same is applicable for NRIs, since they will get more rupees for every dollar.