In August, the rupee stood at 44 per US dollar against the current 53 per US dollar. But if the Indian currency falling is a pain for some, for others it has come with handsome gains.The fast deteriorating value of the Indian rupee is spelling good news for some and bad news for others. With industrial growth at an all-time low, the fall in the rupee could not have come at a worse time.
Indian exporters stand to gain as the rupee fetches more greenbacks while importers will have to pay more to buy their goods. Those receiving remittances are getting better value while consumers are likely to lose more as petrol prices may go up soon on rising import costs. Overseas travel and studying abroad will be more expensive.
Experts say the worst is still not over. The rupee might touch Rs 55 per US dollar. They say it will help if the government steps in to stop the fall.
With economic uncertainty across the world, and the Indian industrial growth slowing down, the rupee tailspin could not have come at a worse time. The Indian rupee tanked 52 paise to a record low of Rs 53.75 per US dollar in early trade on Wednesday, a day after breaching the Rs 53 per dollar-mark, on increased demand for the American currency from banks and importers and sustained foreign capital outflows amid an economic slowdown.
Dollar gains against the euro and other currency rivals overseas amid the lingering euro zone debt crisis put pressure on the Indian rupee. In addition, continued foreign capital outflows amid a slowdown of the domestic economy contributed to the weak rupee sentiment.
Furthermore, increased demand for the U.S. currency from importers and banks led to the fall in the rupee value in early trade, the Forex dealers added. The domestic currency had depreciated by 39 paise to close at Rs. 53.23/24 per dollar in the previous session after witnessing an all-time low of Rs 53.51 as the dollar strengthened in markets worldwide.
Meanwhile, the BSE benchmark Sensex recovered by 65.19 points, or 0.41 per cent, to 15,937.32 in opening trade on Wednesday.
