Rupee Re Slips to 60.71-RBI failed to stop the slowdown

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Shivani
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Rupee Re Slips to 60.71-RBI failed to stop the slowdown

#1 Postby Shivani » Thu Jun 27, 2013 10:04 am

Indian currency rupee slipped again to a new low on Wednesday close to 60.72..after RBI refused to defend it.The currency has lost 13% since May, and this downfall will continue to, if some strong steps to boost the economy are outlined soon.So, what it means to India or how it can impact us..as if now it means that India needs to shell out more cash to import fuel, and this in turn raises the prices of transporting goods, leading to higher inflation.

Which in turn reflects that when there will be high inflation, RBI will hesitate to cut interest rates, a step needed to boost economic growth.So consumers need to keep paying a big amount of their income every month towards housing loans, even as the cost of food and petrol rises and the prospect of decent salary hikes recedes because the economy is struggling.So this fall is creating an impact on India and not to an individual, its very tough for a miiddle class person to meet the needs in this falling economy and rupee too.The days are gone when we could think of buying fruits, watching movies at multiplexes & having dinner out, as in this economy its really very hard to fulfill the basic needs of life, so wants are the things which we can't even think of now..

The rupee is falling because foreign investors are selling the currency, preferring instead to plough into the US market..our finance minister Mr.Chidambaram has also made an appeal to the Indians to curb their investment on gold, because of its high import duty.But till now the effect of this not visible, so some out of the box thinking from our government can work to make this falling rupee stable.

Whats your opinion..how we can come out of this falling economy..

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