From rising prices to investor worries, the falling rupee is changing daily life and business.
The value of the Indian Rupee has fallen sharply against the US Dollar and recently touched the level of Rs. 90 for one dollar. This sudden decline has raised concerns across the country, as it affects everything from household expenses to major business investments.
Why Is the Rupee Falling?
One major reason for the falling rupee is that foreign investors are withdrawing their funds from India. When they sell Indian shares and withdraw funds, they change rupees into dollars. This increases the demand for dollars and weakens the rupee.
Another significant reason is the strong US dollar’s global influence. Due to global economic challenges and high interest rates in the US, the dollar has become stronger than many other currencies.
India also imports a large number of essential goods like crude oil, gold, fertilizers, electronics, and cooking oil. All these items are bought using dollars. When imports become expensive, more dollars are needed, putting pressure on the rupee.
Global trade tensions and slow economic growth in many countries have also made investors nervous. As a result, they prefer to invest in safer economies. The Reserve Bank of India is also allowing the rupee to move more freely in accordance with market conditions, rather than strictly controlling its value.
How Does This Affect Common People?
When the rupee depreciates, daily life becomes more expensive. Imported items such as mobile phones, laptops, cars, and medicines become more expensive. Since fuel is partly imported, petrol and diesel prices may rise, which also increases transport and food costs.
Students planning to study abroad and families travelling overseas are also affected. Their education fees, air tickets, and hotel expenses increase, as more rupees are needed to buy dollars.
However, there is one positive side. People and companies that earn in dollars, such as exporters and IT professionals working with foreign clients, get more rupees for the same income.
What Does It Mean for Investors?
A falling rupee makes foreign investors cautious. Many of them reduce their investments in Indian markets, which can lead to a decline in stock prices. This creates uncertainty in the stock market.
At the same time, export-based companies benefit from a weak rupee. These companies earn in dollars but spend mostly in rupees, which increases their profits. Investors who have invested in such companies may see gains.
Is the Situation Dangerous for India?
Experts say that although the rupee has fallen sharply, India’s economy remains stable. The country still has strong foreign exchange reserves and steady economic growth. The present fall is mainly due to global reasons and investor behaviour, not because India’s economy is weak.
Conclusion
The fall of the rupee is attributed to the outflow of foreign capital from India, a strong US dollar, high import costs, and global trade issues. For ordinary people, it means higher prices and more expensive foreign travel. For investors, it brings both risks and opportunities. The future movement of the rupee will depend on global conditions and investor confidence.