There is something for Indian expatriates in the Kingdom to cheer about. Their rupee fell to a 32-month low against the dollar on Tuesday, which in turn benefits them in their remittances. This is, however, not a piece of good news back home as the country's high and soaring inflation rate is making living very tough. In fact, the worries about Europe's severed debt crisis and worsening domestic economy have pushed up demand for the US currency.
A weak rupee will push up the fiscal deficit further. India imports around 70 percent of its requirement of oil and the government will have to pay more for it in rupee terms.
The rupee fell nearly a percentage point to hit 50.70 to the dollar in morning trade — its weakest since March 2009
No comments:
Post a Comment