Indian Rupee on Thursday had hit a fresh record low, the Rupee opened at 70.22 versus the US dollar. In wake of the Turkey crisis, the Indian currency started off the session on a weak note. Earlier on Tuesday, after opening at a marginal high of 69.85 against the US Dollar, the Indian rupee touched an all-time low of 70 per US dollar.
The Indian currency touched an all-time low of 70.08 against the US dollar, while marking depreciation of around 10 per cent in 2018.
The fall came majorly due to a drop in Turkish Lira, which helped the US dollar to gained strength on the back of fears that economic crisis in Turkey could spread to other global economies.
Meanwhile, the BSE Sensex trimmed early losses to trade flat in late morning deals backed by gains on pharma, banking, auto and IT counters, even as the rupee fell to a fresh all-time low against the dollar triggered by economic crisis in Turkey.
Asian shares also hit fresh one-year lows on Thursday, weighed by worries about China's economic slowdown and Turkey's currency crisis, though news of renewed trade talks between Washington and Beijing helped markets trim some of these losses.
MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.3 per cent, after shedding as much as 1.1 per cent to hit its lowest since August 11, 2017.
It should also be noted that Turkey contributes less than one per cent of the world economy and global exposure to the Turkish banking sector is also not huge bue the dramatic fall in Turkish lira had fuel the investors' worries worldwide. The major fear is that the emerging markets like India could soon follow Turkey's footsteps due to which investors are pulling out their money from the said markets.
As a result of which, the two nations that had impacted massively are India and Argentina.
Below we have listed the points on how the falling Rupee is a bad news for you even if you are not investing in the market.
Continuous downfall in Indian rupee is worrisome for imported goods as the cost of imports will go up. Currently, India imports around 80 per cent of its crude requirement. The rupee downfall will expand India's import bill and will eventually be contributing to the inflation.
In a scenario, where inflation further goes up then there are chances that RBI may hike rates resulting your EMIs outflow.
The current low is also a bad news for students aspiring to study abroad, as lower rupee value will lead to higher education costs. Travelling to out of India will also become expensive.
However, if you have assets on foreign land, then there's some silver lining as a weak rupee will increase the value of your investment.
