 "5 ways a falling rupee makes you poorer")
The Indian rupee is touching new lows and the trend is unlikely to be reversed in the coming months. Since May, the rupee has depreciated nearly 13% against the dollar and is currently the worst performing currency in Asia. So while a depreciating rupee is expected to hit you directly with rising inflation, here are 5 ways a falling rupee makes you poorer.
1) Higher fuel price: India is heavily dependent on crude imports.Crude is priced in dollars and a depreciating rupee increases the cost of imports. Petrol,diesel prices are already being hiked regularly and expectations are that the quantum of hikes will be increased to reduce losses of the oil companies. Your cooking gas is also expected to see a major hike in prices with some estimating it to be in the range of Rs 100.
2) Costlier foreign travel: If you had any plans to travel abroad, get ready to shell out more rupees to buy dollars for that dream vacation. Travel agencies are already facing the brunt of weak demand for foreign tours though inbound travel by foreign and domestic tourists are expected to pick up.
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3) Costlier foreign education: Students studying abroad or planning to go this year are going to be the worst hit with tution fees and lodging becoming more expensive.While six months back, for 1 lakh dollars, a student had to pay somewhere in the range of Rs 50 lakhs, now he has to shell out Rs 60 lakhs.
4) Costlier FMCG products: Expect to pay more for Soaps, detergents,deodorants and shampoos. Crude oil is a key input for all these products and sooner or later, companies are expected to pass on the burden to its consumers.
5) Costlier Durables: Consumer durables like TVs, ACs, refrigerators and electronic gadgets like Cell phones, laptops, computers have already seen a hike in prices. Expect more of it if the rupee continues to slide and touch new lows