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Facing tremendous pressure, the Indian Rupee has fallen close to its lowest level against the US Dollar. If this weakness of rupee continues in the currency market for a few more days, then everything from the smartphone in your hand to the petrol you put in your car, can become expensive. Let us understand in simple language how this earthquake in the currency market can make a huge dent in the everyday life of a common man and his monthly budget.

Why did Rupee’s health end up in ICU?

The biggest and main reason behind the continuous deterioration in the health of the rupee is crude oil. Due to the ongoing tension in West Asia, crude oil prices in the global market have crossed the magical level of $ 100 per barrel. India imports about 85 percent of its oil needs from abroad, that is, it buys it from outside. Oil becoming expensive simply means that India will have to pay more dollars for it than before. When the demand for dollars in the market suddenly increases, the rupee naturally starts weakening. Along with this, the increasing strength of the US dollar globally and the rise in US bond yields have also shaken the currencies around the world.

There is going to be a direct attack on your pocket, know what will be the effect

The first and direct impact of this historic fall in the rupee will be visible on all the goods that we import from abroad. If you are planning to buy a new smartphone, laptop, gaming console or camera, then now you may have to spend more time in your pocket. Companies will now have to spend more money to make payments to foreign suppliers and this increased expense will ultimately be recovered from the pockets of common customers.

Not only electronics, but many major sectors like aviation, chemicals and automobiles are heavily dependent on imports for their raw materials. When the cost of freight and logistics increases, its direct impact is passed on to the general public in the form of inflation in groceries, food delivery and everyday essentials.

Traveling abroad and studying abroad is no longer cheap

Are you planning to travel abroad in the upcoming holidays or are your children studying in a foreign university? If yes, then this fall of rupee can increase both your sleepless nights and worries. Now to buy one dollar you will have to pay more rupees than before. This simply means that the bills for hotel booking, food and shopping abroad will increase significantly. At the same time, the financial burden on the families of students paying fees in foreign universities will directly increase because the cost of living and eating there will go up significantly in rupee terms.

Don’t worry, this huge fall has some benefits too

It is said that every coin has two sides and this record fall of rupee is not only causing loss to everyone. This news has brought bumper profits for Indian companies that sell their goods or services abroad. Especially the big companies in the IT sector as well as the pharmaceutical companies earn their income in dollars. When these companies convert these dollars into Indian rupees, they will get much more money than before. Apart from this, the value of remittances sent by the Indian brothers and sisters who are working abroad to their home countries will also increase significantly.