Rupee vs Dollar: Rupee crosses 80, how much will this weakness hit the common man? think of it as

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Since December 2014, the rupee has depreciated by 25 per cent against the dollar. On Tuesday, the rupee has touched the psychological level of 80 rupees per dollar due to higher crude oil prices in the global market. In such a situation, it is necessary to assess how this depreciation of the rupee is going to affect the life of the common man.

Overall, as the weakness in the rupee increases, the troubles of the common man will also increase. The biggest reason for this is that our country is dependent on imports for many things. Most of the import-export is done in US dollars only, so to buy anything from outside countries, we will have to spend a lot of rupees. In such a situation, other imported goods including petrol and diesel will become expensive in the country.

Computers, mobiles, laptops and electronic goods can be expensive

The weakening of the rupee can have an impact on computers, laptops, mobile phones, edible oil and other electronic items. Most of the electronic goods and gadgets are imported from abroad. Hence, a weakening of the rupee may also push up their prices, as importers will have to pay more for the goods value and quantity. Studying abroad can also be costly due to the depreciation of the rupee. A fall in the value of the rupee clearly means that you will have to pay more rupees for every dollar. This will definitely increase the expenses of the students studying abroad.

Holidays abroad will be expensive

If you are thinking of going abroad for business or holidays, then due to weak rupee, it can prove to be an expensive deal for you. As the rupee weakens and falls down, your foreign travel will become expensive. If you had planned your foreign travel at the level of ₹ 70 per dollar, then due to the rupee becoming ₹ 80 per dollar, your expenses will also increase by about 15 percent. As the rupee depreciates, the country’s imports also become expensive, which also reduces the country’s current account deficit.

These people are benefiting from the breakdown of the rupee

The weakness in the rupee is not a loss deal for everyone. Exporters are going to benefit from this. This is because selling goods abroad generates dollar income and as the rupee depreciates, they will get a higher price for their product. IT and pharma companies benefit from the depreciation of the rupee as they also export their products in a big way. Most of their income is in dollars only.

Why is the rupee compared to the dollar? What is the Bretton Woods Agreement?

Most of the currencies in the global currency market are compared against the dollar. We often see that the value of the currency of a country against the dollar is discussed. In our country also the fluctuations of the rupee are compared with the dollar itself. The rupee has depreciated significantly against the dollar in the past few months. But, why does the rupee compare with the dollar? The answer to this question is hidden in the ‘Bretton Woods Agreement’ during World War II. In this agreement it was proposed to create a neutral global currency.

At that time America had emerged economically strong in the war-torn world. In such a situation, the US dollar was chosen as the reserve currency of the world and the dollar was used as a parameter for the currency of the whole world.

Expansion

Since December 2014, the rupee has depreciated by 25 per cent against the dollar. On Tuesday, the rupee has touched the psychological level of 80 rupees per dollar due to higher crude oil prices in the global market. In such a situation, it is necessary to assess how this depreciation of the rupee is going to affect the life of the common man.

Overall, as the weakness in the rupee increases, the troubles of the common man will also increase. The biggest reason for this is that our country is dependent on imports for many things. Most of the import-export is done in US dollars only, so to buy anything from outside countries, we will have to spend a lot of rupees. In such a situation, other imported goods including petrol and diesel will become expensive in the country.

Computers, mobiles, laptops and electronic goods can be expensive

The weakening of the rupee can have an impact on computers, laptops, mobile phones, edible oil and other electronic items. Most of the electronic goods and gadgets are imported from abroad. Hence, a weakening of the rupee may also push up their prices, as importers will have to pay more for the goods value and quantity. Studying abroad can also be costly due to the depreciation of the rupee. A fall in the value of the rupee clearly means that you will have to pay more rupees for every dollar. This will definitely increase the expenses of the students studying abroad.

Holidays abroad will be expensive

If you are thinking of going abroad for business or holidays, then due to weak rupee, it can prove to be an expensive deal for you. As the rupee weakens and falls down, your foreign travel will become expensive. If you had planned your foreign travel at the level of ₹ 70 per dollar, then due to the rupee becoming ₹ 80 per dollar, your expenses will also increase by about 15 percent. As the rupee depreciates, the country’s imports also become expensive, which also reduces the country’s current account deficit.

These people are benefiting from the breakdown of the rupee

The weakness in the rupee is not a loss deal for everyone. Exporters are going to benefit from this. This is because selling goods abroad generates dollar income and as the rupee depreciates, they will get a higher price for their product. IT and pharma companies benefit from the depreciation of the rupee as they also export their products in a big way. Most of their income is in dollars only.

Why is the rupee compared to the dollar? What is the Bretton Woods Agreement?

Most of the currencies in the global currency market are compared against the dollar. We often see that the value of the currency of a country against the dollar is discussed. In our country also the fluctuations of the rupee are compared with the dollar itself. The rupee has depreciated significantly against the dollar in the past few months. But, why does the rupee compare with the dollar? The answer to this question is hidden in the ‘Bretton Woods Agreement’ during World War II. In this agreement it was proposed to create a neutral global currency.

At that time America had emerged economically strong in the war-torn world. In such a situation, the US dollar was chosen as the reserve currency of the world and the dollar was used as a parameter for the currency of the whole world.

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