Dollar Rate Effect: It is often seen that people are worried about the dollar rate. Do you know that when the rupee weakens against the dollar, how does it affect India?
India’s rupee is continuously falling in front of the American dollar.
India’s rupee is continuously falling in front of the American dollar. On Tuesday, the US currency declined by seven paise to close at 82.37 per dollar (tentative). This is happening for the first time that the Indian currency has gone to such a low level. The Indian currency is going towards a steady decline in front of the dollar. These days, there is a debate going on even if the rupee is not weak and the dollar is stronger. In such a situation, the question is that if the rupee falls, then what is the effect of it.
So today we are telling you that whenever money falls, what is the effect on common man in India. Also know how the value of dollar and rupee affects people.
Although India also invests a lot of things abroad, but India’s imports are more than India’s investment. That is, we sell less goods, while buying more. In such a situation, less dollar comes to us and more goes. That is, goods worth billions are bought in India on the basis of dollar value. Because of this, India has to pay more in lieu of dollars. Now the higher the value of the dollar, the higher the price India will have to pay for the imported goods.
What is Import-Export Account?
If we look at the import-export figures for September, then India has reduced exports, while imports are very high. India had a trade deficit of Rs 1 lakh 24 thousand 740 crore due to high imports. That is, more money was spent in buying other goods than the money that came from selling. In such a situation, India is suffering due to the fall in the value of the dollar, because the trade deficit of India is very high.
About 80 percent of trade in the world is done in dollars. Dollars have been used to make every item. The process of someone’s goods is that item, which comes from abroad. This means that the trade for him would have been done in dollars only. Simply put, most of the goods used in your work are related to dollars and till it is made, the trade is done in dollars. In such a situation, every item is affected by the value of dollar and Indian currency. If the dollar value is more, then the price of goods will be high for us.
Now talking about the effect, it is clear that when India’s expenditure is increasing, then it is a wrong sign for India, which affects every class. Along with this, the trades which depend more on imports, the goods related to those trade also increase when the value of dollar increases. But, most of the goods in India include things related to imports, due to which the prices keep on increasing.
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