As we all know that recently Rupee has touched the heights of being low i.e. 72.10. and it is surely an important topic of discussion but the hypocrisy is that the leaders who criticised UPA 2 govt. on the value of Rupee are now not speaking a single word on the value of Rupee.

Effects!!!

In this article We are here to know the effects of the falling value of rupee, so here are they.

1. The increase in fuel prices.

As now we are suffering from the rising prices of fuel prices, the one of some main reason is the falling rupee value. Because India has to import 80% of its crude oil from other countries(OPEC countries), and we have to pay them in dollars.

2. Inflation will increase.

Due increase in fuel prices it will directly increase the inflation rate. And because of increase in inflation common man and poor people have to suffer a lot because it will increase the prices of the items which we need in our daily lives.

3. Increase in interest rates.

To save the falling rupee value RBI will surely increase the interest rates and the peoples has to think twice or thrice to take loans to start the business which will surely increase the growth of industries and businesses.

The worst thing is that the major income source of banks are from loans and because of increased interest rates people will take fewer loans from which banks have to face losses.

4. Foreign trips and study

Foreign trips and study will be costlier then earlier because of travel expenses and low exchange value.

5. Investors will withdraw money from India.

No foreign investor like to invest in a country whose currency value is volatile. if the rupee falls against the dollar. In dollar terms, their portfolio value tends to get decreased.

These are some of the major effects of falling rupee value there are many more which will talk about but in some other post. #rupee72