Impact of Rupee Depreciation on Common Man
Here are the few areas which highlights the impact of rupee depreciation on Common Man:
1. Importers/Exporters: Importers will be adversely affected as they will have to pay more for same quantity. But conversely exporters will be delighted as they will get more for same quantity.
2. Imported goods: Imported goods will become costly. So, if you are using imported goods then be ready to pay more.
3. Fuel price: A weak rupee will increase the burden of Oil companies which will surely be passed to consumers.
4. RBI’s Monetary Policy: If depreciation of rupee continues, it will increase inflation giving no room to RBI to cut policy rates.
5. Students studying abroad: Students studying abroad or willing to study abroad will have to pay more.
6. Tourism: The depreciating rupee will surely adversely affect your abroad holiday plans.
7. Overseas Indian: Overseas Indians will be delighted with rupee depreciation as this will increase the value of their savings.
8. Country’s Fiscal Health: A falling rupee will add fuel to the import bill of the country and thereby increasing its current account deficit (CAD).