Effect of fall in rupee
The impact of increasing tension in the Middle East and the war related to Iran is now visible on India’s economy as well. The biggest pressure is on the Indian rupee, crude oil and import costs. There has been a decline of about 5.67% in the rupee since the Iran war. On 27 February, the Indian Rupee was at the level of 91.08 rupees, which now came to the level of 96.25 rupees on 18 May.
This means that since then till now the rupee has seen a decline of 5.67 percent i.e. 5.17 rupees. The effect of the fall of rupee is being seen everywhere in petrol-diesel, gas, stock market, gold, inflation etc. At the same time, children’s education abroad has also become expensive. How expensive has studying abroad become due to the fall in the rupee in the last 80 days? Let us understand from the data.
How much does a fall of one rupee increase expenditure?
Suppose the annual fee of a student is 50,000 US dollars. The rate of 1 dollar was 91 on February 27, which is now around 96. 1 dollar = 91 rupees, so the fee was around 45.50 lakh rupees. But now the dollar has reached Rs 96, so the same fee will now be around Rs 48 lakh. That is, due to the fall in the rupee alone, an additional burden of about Rs 3 lakh has increased on the children’s education.
50000× 91=45,50,000; 50000×96=48,00,000
Impact on important indicators of the economy
So have you seen how much the falling rupee is affecting children’s education abroad. This is a matter of study. Let us now tell you where else the falling rupee can create problems. Due to Iran war, crude oil is becoming increasingly expensive and the rupee is falling. If oil continues to run like this then its impact can be seen on the prices of petrol, diesel, CNG, PNG. At the same time, there may be a danger of price increase due to increase in the costs of airlines companies.
Indian Economy
What will happen to the stock market and gold and silver?
In such an environment, foreign investors withdraw their money from the Indian market. Due to this, Sensex and Nifty may fall. At the same time, pressure is being seen on banking and auto shares also. Due to rise in crude oil and fall in rupee, weakness can be seen in the shares of aviation and paint companies. Unlike the stock market, in such an environment a rise in gold can be seen. In fact, as stress increases, people invest money in safe investment i.e. gold.
Can inflation increase?
The effect of oil becoming expensive is not limited to fuel only. Due to cost of fuel, transport becomes expensive which impacts food items. In fact, due to increase in the costs of FMCG companies, everyday items may become expensive. If the rupee weakens further, oil companies may increase their prices further. The Reserve Bank of India may take some measures to stop the fall of the rupee. Overall, the fall in the currency of any country affects its economy.
