Nowadays the stock market shows the Indian rupee INR reflecting the lowest of the lowest making a history low pertaining to the us $ dollar $ today on 10th june 2013 on monday. This indian rupee register low deal because of the greenback tightened competing world’s all world currencies. Find here the graphical representation of some stock experts predicting indian rupee reaching 60 rupees given the persistance of trends head to be the same.
The lowest of a rupee impacts the layman as under:
- NDTV interviewed Kishore Narne of Motilal Oswal Securities says a weakening rupee is helpful for gold sales due to world commodities like gold & silver are quoted in dollars in dollar market. The fifteen percentage down fallen Gold rates of the year 2013 might sell in a range.
- The education and travel industry is not an exception while the rupee weakness because extra money shelled out by students studying overseas and indian tourist on vacations and holidays to cover the living expenses.
- The it exporters like infosys makes good money as their earnings or revenues are in dollars so when the rupee weakens they gain a lot from north america and europe.
- On the other hand importers or investors (particularly foreign funds) incurr higher expense towards raw materials import from abroad and thus making corporate loss.
- The import invoice of India contains Crude as a biggest component. Thus A weak rupee is worst for the indian economy at times when oil firms buys crude in us dollars will spend extra money for oil imports with the deficit in current account of india. The notion of weaking rupee means respite from high fuel prices but at the same there is no threat of rate increase.