New Delhi: The situation of the Indian rupee continues to deteriorate from bad to worse. The rupee depreciated 16 paise to an all-time low of 82.33 against the US dollar in early trade. The rupee had settled at 81.88 in the previous session. India imports huge quantities of many medicines, including essential electric goods and machinery.
Most mobile gadgets are imported from China and other East Asian cities. If the rupee continues to depreciate like this, imports will become costlier and will have to spend more. Indian companies raise huge amounts of loans from abroad at cheaper rates. When the rupee weakens, it becomes expensive for Indian companies to raise debt from abroad. This increases their costs, postponing their plans to expand the business. This can reduce employment opportunities in the country.
Indian students studying abroad have to spend in dollars on accommodation, college fees, food and transportation. In such a situation, due to the weakening of the rupee, those students will have to spend more money than before.
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