RUPEE IN FREE FALL AGAIN are we Facing the Blues again? Must read for all NDA/CDS Candidates Regarding Economics
-When the rupee falls, export – oriented stocks such as IT and pharma gain because their earning go up in dollar terms.
-Oil marketing companies and consumer goods, firms, which depend on imports, ace a decline in earnings.
-Overall investor sentiment weakens.
-A falling rupee makes goods costlier.
-A rise in prices hits current account deficit (CAD) and eventually the broader economy.
-Earn more in dollars, but a slowing economy could offset gains.
GROCERY, FUEL BILL
-Imported goods like rude oil turn dearer.
-costlier oil boosts retail price of petrol and diesel, and consumer goods
-This fans inflation. everything from vegetables to cellphone become dealer.
FOREIGN TRAVEL, EDUCATION
education loans go up, though the course fee in dollar terms remains the same.
Shelling out more to buy foreign exchange adds to travel costs
JOBS AND SALARIES
Firms tends to reduce workforce, lower wage bills in times of slowdown.
The Indian rupee tumbled 69 paise to a nearly 2-year low to 64.88 on sustained dollar demand from banks and importers in view of a higher dollar overseas following yuan devaluation.
The rupee resumed lower at 64.55 per dollar as against yesterday’s closing level of 64.19 at the Interbank Foreign Exchange (Forex) market and dropped further to a nearly 2-year low at 64.88 at one point.
China’s surprise decision to devalue the yuan sparked a sell-off in global currencies. The ones that were worst hit were those from economies whose exporters either rely on Chinese companies to buy their products or compete with their exporters for customers.
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