Dollar Vs Rupee Impact: Indian Rupee Hits an All-Time Low, Know Potential Reasons

Dollar Vs Rupee: The Indian rupee just hit a historic low, closing at 84.94 per US dollar on December 18, 2024 and opening at 85.06 on December 19. The rupee’s 12-paise loss versus the dollar has aroused concerns regarding the factors causing its depreciation. Experts attribute the dip to increasing demand for the dollar as international investors return to the Indian stock market. Furthermore, the dollar index, which measures the currency’s strength versus other major currencies, has risen beyond 108, bolstering the US dollar. Geopolitical tensions between nations have also contributed to the rupee’s weakness.

Advantages and Disadvantages

The decrease of the rupee has a varied impact. On the plus side, exporters may gain from higher dollar revenues, while a lower rupee may stimulate tourism, hotel sectors, and medical tourism in India by making them more cheap to foreign visitors. However, the downsides are enormous. The cost of imports such as gasoline, gold, and critical raw materials will rise, raising the prices of goods and necessities. Furthermore, studying or visiting overseas will become more expensive, putting a strain on individuals seeking education or recreation in developed countries. Rising expenditures are likely to have an impact on the common man’s financial situation.