As the rupee slides to a lifetime low against the dollar, individuals planning to travel abroad, students looking to study overseas and those planning to buy imported items would be affected. However, NRIs repatriating money home and investors of mutual funds having exposure to foreign stocks will gain from the depreciating rupee.
The rupee has depreciated against the US dollar due to strengthening of the greenback and relentless selling by foreign portfolio investors. Moreover, concerns around global economic growth, a rise in the dollar index and galloping inflation have put pressure on the currency. Nish Bhatt, founder & CEO, Millwood Kane International expects the currency to face pressure as inflation is on an upward spiral, raising prospects of further rate hikes by the Reserve Bank of India.
A report by Credit Suisse Wealth Management, India, says that allowing the rupee to weaken against the dollar could help India’s…
