Not only the stock market, the rupee was also disturbed by the trump tariff; This effect will be on you

Fall in rupee

The past week was not good in India’s economic terms. US President Donald Trump first decided to increase the application fee of H-1B visa, then only after that he has imposed a tariff on pharma. This had an impact on the stock market, the Sensex broke more than 2000 points a week. But at the same time, there was pressure on the Indian rupee, on Friday, the rupee reached his all-time low and closed.

The rupee closed at 88.7175 against the US dollar on Friday. It did not change much during the day, but a decline of 0.7% declined at the end of the week, which was its biggest weekly decline since the end of August. But do you know that if the rupee continues to fall like this, then it will also affect you.

1. Dearness- The fall of the rupee increases the price of imported goods like petrol, diesel, electronics, and edible oil, as they have to pay more rupees to buy them. It increases inflation, which makes everyday foods such as food, fuel and other items expensive. For example, increasing the price of petrol increases transportation and production costs, which also affects the prices of other goods.
2. Transportation- A large part of petrol and diesel is imported in India. The cost of the rupee increases the cost of fuel, which directly affects the transportation. Buses, trucks, and taxi fare increase, causing the common man’s travel and freight to be expensive. Due to this, the prices of goods in the market also increase.
3. Price of imported goods- Many everyday things like smartphones, laptops, medicines and some food items such as dry fruits are imported. Due to the weakening of the rupee, these items become expensive, which makes it difficult to buy them for the middle and low-come class.
4. Debt and interest rates-Due to the fall of the rupee, the government and companies have to spend more rupees to repay foreign debt. This can increase government spending, and there is a possibility of increasing interest rates. This can make home loan, car loan, and other loans expensive for the common man, which affects their monthly savings.