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Indian rupee is the worst among 43 countries of Asia know how it will make new inflation hole in you

Photo: PTI

Indian Rupee is the worst among 43 countries of Asia, know how it will make new inflation hole in your pocket

Highlights

  • 2021 was a very bad year for the Indian currency rupee
  • Investors pulled out about $4 billion from the market
  • Rupee has fallen 2.2% in the quarter

The year 2021 has been a milestone for the Indian stock market. The market touched new heights amid the Corona crisis. But on the other hand, the year 2021 was very bad for the Indian currency rupee. According to the Bloomberg report, the Indian currency rupee has been the worst performing currency in Asia. The depreciating phase of the Indian rupee has been going on for a long time. According to the report, the main reason behind this is the ongoing selling by foreign investors.

Over the past few trading weeks, foreign investors’ stance has weakened the position of the Indian rupee. Foreign investors have pulled out nearly $4 billion from the market, causing the rupee to fall by 2.2% in the quarter.

What is the reason for weakness in rupee

According to the report, the global fund has withdrawn US $ 420 million (about Rs 31,920 crore) from the Indian stock market. That much capital has not been withdrawn from any stock exchange in Asia. Due to the new infection of corona virus Omicron, there is constant pressure on the Indian stock market. In such a situation, the concerns of investors have increased.

Know how much the rupee will fall

In the report, citing experts from QuantArt Market Solutions, it has been told that by the end of the last quarter of this financial year i.e. March 2022, the rupee may fall at a price of $ 78 per rupee. Earlier its low level was at 76.9088 in April 2020. Bloomberg had predicted in one of its traders and analysts survey that the price of rupee could be $ 76.50. There is an apprehension that the rupee may fall 4 per cent this year. This will be its fourth consecutive year of decline.

Another inflation hole in your pocket

The weakness of the rupee will have a direct impact on your pocket. Weakness of rupee will further strain your pocket amid rising prices of essential commodities. India buys 80 percent of its crude oil requirement from abroad. The rupee will cost more as the US dollar becomes costlier. This will make freight cost expensive. This will have a direct impact on the inflation of everything needed.

From mobile laptop to car everything is expensive

Due to the weakness of the rupee, the mobile phones, accessories, laptops, TVs of your need will also become expensive. Most of the mobile assembly is done in India, whose parts come from abroad. Same is the case with the auto sector as well. The sector is already grappling with chip shortage. At the same time, now the metal and parts will also be expensive.

expensive to study abroad

The impact of this will have a significant impact on Indian students studying abroad due to the weakness of the rupee. Due to this their expenses will increase. For the money they take with them, they will get fewer dollars. And they will have to pay a higher price for things. Apart from this, Indians going abroad will also have to spend more.

IT companies showed advantage

The export sector has got relief from the weakness of the rupee. There is good news especially for IT companies. This will increase their earnings. Similarly, exporters will benefit while importers will suffer.

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