Analysts said trade war between China and the US is putting pressure on all the Asian currencies
Continued strengthening of the US dollar, lack of foreign investment inflows and concerns over rising oil prices have kept rupee under pressure and experts suggest that the Indian currency may even touch 70 per dollar mark.
Analysts said trade war between China and the US is putting pressure on all the Asian currencies.
A weak rupee will fan inflation, by making imported goods costlier. Petrol and diesel prices will go up, which will knock up prices as cost of ferrying goods go up.
Elevated inflation will also mean that the Reserve Bank of India (RBI) may look at raising lending rates to contain the price line. Besides, the RBI may also be prompted to keep interest rates high to maintain India’s attractiveness as a debt market and woo dollar inflows. So, home loan EMIs may be creeping up soon.
So what does weak rupee mean for your pocket and what can you do to hedge your risks? Watch the accompanying video for answers…