Of late, the most common things to read in the newspaper is the rupee vs. dollar battle. The rupee hitting an all time low and struggling to stand aga
Of late, the most common things to read in the newspaper is the rupee vs. dollar battle. The rupee hitting an all time low and struggling to stand against the over powering dollar is not even breaking news. But it continues to grab the reader’s attention. This is because of the multiple implications of the rupee vs. dollar battle. The rupee and dollar struggle is not restricted to a currency battle. It is much more than that. Everything from your daily supply of groceries to your business is affected by this rate. The value of the rupee is a direct reflection of the current economic climate. In this case, the fall in the value of the rupee is a clear indicator of the economic struggle that we are constantly facing. Be it the inflation in price of basic goods or the fall in investment, each time the economy faces a challenge, the results directly impact the value of the rupee.
There is a lull in the market ever since the devaluation of the rupee started. Be it the real estate sector, share market or even the day to day grocery needs, you are spending more than what you did just a year ago. Currently, the rupee has already touched an all time low of 62 against the dollar. There has been an overall drop of 15% in the rates of dollar since May and this has led to several investors struggling to keep pace with the market. As managers, it is important to take into account such realistic scenarios and prepare yourself for the economic climate of corporate world.
Analysts have predicted an even worst economic scenario when the rupee will further be devaluated against the dollar. It is expected to touch the number of 65 against a dollar. Currency markets function as an after effect of the basic details of demands and supplies. This slide of the rupee shows the imbalance of the equilibrium. The government is taking desperate measures to repair the situation by infusing new minds in the RBI and urging them to implement innovative measures. But the situation is precarious and the results will be observed as the time progresses.