The rupee has reached a historic low against the dollar. Which will increase the troubles of Indians. This has created such an atmosphere as the sky has broken on the people troubled by inflation. There is a possibility that inflation in the country will increase due to tariff war. Donald Trump’s tariff war is affecting democracy around the world. The Indian currency fell 44 paise to a historic low of 87.9400 per dollar.
These things can be expensive due to the weakening of the rupee
The rupee has declined after the announcement of 25% tariff on steel and aluminum imports by US President Donald Trump. After the rupee reaches the historic height, the Indian stock market is also seeing a big decline. In particular, a rapid decline in the stake of the metal section has been observed. As the rupee weakens against the dollar, the burden of inflation on the common people will increase. The duty on imported goods will become expensive. Due to which inflation will increase. And if the dollar becomes expensive then the cost of imported goods will increase. Also, import of petroleum products will become expensive. Due to which the prices of petrol and diesel will rise. On the other hand, prices of electrical equipment etc. will also touch the sky. Tuition fees and living expenses of students studying abroad and traveling abroad will also increase.
Inflation will also affect this area
As the rupee weakened, challenges for businesses dependent on imported goods will also increase. Because, increasing input costs will also affect the profit margin. Companies which charge interest in foreign currency will have to pay a higher price. Some benefits can be seen in export trade. For example, there is a possibility of profit in areas such as IT, pharma, gems and jewelery.
