A weaker rupee impacts you in many ways. Here’s what you can do to soften the blow. – Times of India
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If you are…
A consumer: Most of us who are already facing the brunt of inflation will see fresh price surges on all imported items.
An exporter: You can now sell more price-sensitive products by reducing rates. Alternatively, you may get more dollars on the same number of sales
A student in foreign college: You will need to draw a larger amount to pay the same fees
An outbound tourist: Many currencies have depreciated against the dollar, but you will still pay more as flights and hotel bookings are usually done in dollars
A freelancer: An assignment billed in dollars will get you more money. But you may have more competition as some other currencies have weakened more
An Indian investor with $ deposits:
Value of holdings has gone up 7% in rupee terms
An investor in US stocks: Dow Jones index has fallen 14% in 202, but in rupee terms the losses are lower at about 8%
What you can do as…
A consumer: Identify import substitutes. If not buying for the brand, you will find local alternatives
An outbound student: Visit your dentist, go for a haircut, shop for clothes and avail other such services before leaving. Look for cheaper remittance services
An outbound tourist: If destination country’s currency has depreciated more (like Turkey) you may get better deals by booking directly in that country
An investor in dollars: Wait for rate hike cycle to end. Rates have shot up but are likely to go up further, which means bonds and equities may get cheaper
A business owner: Bargain hard with international suppliers as they will be able to cut prices due to depreciation
A policymaker: Take countercyclical measures to encourage foreign investments by lifting restrictions
What RBI is doing to check slide….
– Selling large amounts of dollars to support rupee
– Raising interest rates to make Indian investment attractive
– Removing reserve restrictions on dollar deposits with banks
– Allowing traders to make settlements in rupees to reduce dollar dependence
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