? Cool Title, but what’s the news?
The Rupee (INR) closed at 68.42 against the US dollar – the lowest closing level against the greenback since November 2016.
? Okay, but what does it mean?
The rupee has weakened due to five factors – a surge in crude oil prices, yield fuelled increase in US Dollar index, weakness in emerging market assets, record net speculative bets on US dollar, and relatively weaker pace of foreign inflows into India.
? Why should I care?
A weak rupee directly affects your finances in negative as well as positive ways. A weak rupee compared with the dollar would mean high cost for imports. It will definitely negatively affect any investment done abroad, foreign education, and foreign travel. A weak rupee positively benefits remittance to India, and redemption of foreign investments. But has a mixed impact on equity investors.