The rupee fell to 67.27 dollar at day's low, its cost since feb 8.2017,before settling at 67.08
Students heading abroad should get prepared to shell out more for their education and living expenses. Students taking loans for their overseas education too will be affected. They get their loan in Indian rupees but have to pay in foreign currency. “They may also fall short in funds as the loan would have been taken according to their initial requirements. In such a scenario, either the student’s personal contribution will have to be increase or he will have to ask the bank to increase the loan amount,” says Ashutosh Khajuria, President, Treasury, Federal Bank.
This, however, does not apply for jobs that are paid in dollars. Vacationers are going to feel the heat of the rising dollar. The airfares, stay, shopping and food will be more expensive. However, those who got their holiday packages before the depreciation of the rupee are safe for the moment. A little fore thought may help travellers like selecting short haul destinations or heading for a non dollar country. The hotel industry especially the luxury section will benefit. They get their revenue in foreign currency.
The Fast Moving Consumer Goods like soaps and shampoos require imported raw material. The cost pressure on companies will lead them to revise the prices of their products. The prices of pulses and oil which are largely imported are going to see a rise in prices. “Crude palm oil prices set the pace for prices of other edible oils. It is imported in large quantities and any rise in its prices will add to the inflationary pressure,” warns Arvind Chari, fund manager, fixed income, Quantum Asset Management.
Students heading abroad should get prepared to shell out more for their education and living expenses. Students taking loans for their overseas education too will be affected. They get their loan in Indian rupees but have to pay in foreign currency. “They may also fall short in funds as the loan would have been taken according to their initial requirements. In such a scenario, either the student’s personal contribution will have to be increase or he will have to ask the bank to increase the loan amount,” says Ashutosh Khajuria, President, Treasury, Federal Bank.
Be prepared for shrinking pay packages. Industries that depend on imported raw material will cut costs either by reducing salaries or human resources.
This, however, does not apply for jobs that are paid in dollars. Vacationers are going to feel the heat of the rising dollar. The airfares, stay, shopping and food will be more expensive. However, those who got their holiday packages before the depreciation of the rupee are safe for the moment. A little fore thought may help travellers like selecting short haul destinations or heading for a non dollar country. The hotel industry especially the luxury section will benefit. They get their revenue in foreign currency.
Car companies are already revising their prices as they are dependent on imported raw material, pay royalties to their parent firms and have loans and borrowings in foreign currency. Consumers of imported paperbacks and gizmos should gear up to pay more. Marketing companies will try and absorb the increase in cost but there may be cases when the consumer may have to bear the brunt.
Remember that we were following fixed rate system till 1975. We had partial controls on currency market till 1993 when as per IMF standards we liberalized our entire economy.
- 1947 : 1 US$ = 1.00 INR
- 1948 : 1 US$ = 4.79 INR.
- 1965 : 1 US$ = 4.79 INR.
- 1966 : 1 US$ = 7.57 INR.
- 1971 : 1 US$ = 8.39 INR.
- 1985 : 1 US$ = 12.0 INR.
- 1991 : 1 US$ = 17.9 INR.
- 1993 : 1 US$ = 31.7 INR.
- 2000 : 1 US$ = 45.0 INR.
- 2013 : 1 US$ = 60.0 INR.
- 2017 : 1 US$ = 65.0 INR.
- 2018 : 1 US$ = 67.27 INR (current)
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