How Rupee Fall Influences Your Investment?


Impact on Export

Rupee appreciation has a negative impact on companies which earns major part of their revenue from export. Appreciation of rupee will make their products more expensive in the foreign market. Due to which either their buyer which buy lesser goods or move to sellers from other nations selling same products at a cheaper cost.

Rupee Depreciation

It indicates fall in the value of rupee against dollar.

Impact on Economy

Whenever the value of rupee is depreciated, it signifies that Indian economy is losing strength.

Impact on Import

Rupee depreciation is bad for companies depending on import trade, as they would be required to pay more prices for the same products than earlier; in a nut shell it means that the imports will get expensive. As Indian economy depends primarily in the import of oil, any fall in the value of rupee would impact our oil bill. This while also lead to inflation because of increased oil bill. Inflation is known for eating up the returns of Investors.

Impact on Export

It's only the export companies who would probably benefits from rupee depreciation as their goods will turn cheaper for export and this would attract more number of foreign buyers for their products.

Also Read: 7 Financial Tips For Your Big Career Shift