Rupee Fall: Indian Rupee hits all time low against US Dollar

The Indian rupee plunged to an all-time low and breached the Rs 79-mark against the US dollar for the first time.

What’s leading to the fall in Rupee?

• The rupee hit record low against the dollar on Wednesday as renewed focus on the weak economic outlook prompted losses on Asian currencies.
• The elevated global crude oil prices further weakened the Rupee as India heavily imports crude oil.
• Foreign investors continue to withdraw money from Indian markets and have pulled out close to Rs 56,123 crore till date in June.

How does falling rupee impact you?

• Imported goods and materials become more expensive, driving up the inflation.
• However, in case you’re investing in US Stocks from India, your portfolio will benefit from rupee depreciation. 
• Indian exporters will also benefit as their goods and services become more competitive in price.

Analysts View on Rupee depreciation

• Analysts believe the rupee could further depreciate to Rs 80 against the US dollar over the near-term.
• If the pace is sharp, then it could lead to inflation and general instability in markets.
• The US Central Bank meeting in July will determine the further course of Rupee.

To know more on the fall and its impact Read here.