Rupee has been trading lower again at around 59.77 on Friday, July 19, 2013 @ 13.25 hrs IST, in the Foreign Exchange market. Continued demand for dollars from importers has been sighted as the prime reason for fall of rupee. Earlier, on Thursday, July 18, 2013, the Indian currency had depreciated by 33 paise and closed at 59.67 against the dollar.
The Rupee Vs the Dollar fight in the foreign exchange market has been going on since the last few months. The value of rupee against dollar is fluctuating consistently to various levels in the same manner as the electrocardiographic heart monitor shows the heartbeat of a person.
“The rupee has started discounting the RBI measures and is now reacting to FII pullout and other global factors. However, a strong equity market will help cap the downfall”, said Mr. Pramit Brahmbhatt of Alpari India.
The depreciating value of rupee is showing its impact on many sectors of Indian market. Petrol prices in Indian market have gone up 4 times in the last couple of months. Coal imports have become costlier.
There is an old saying, “Where there is evil there is good.” So to justify this quotation, the rupee depreciation not only has some bad impact on the country but it is beneficial for exporters. The exporters are gaining from the depreciating rupee value as the exported goods bring in dollars. Industries such as IT, textiles, hotels and tourism are gaining with the dollar coming in for them in the form of their income.
Overall with both positive and negative impact in the Indian market scenario, rupee continues with its roller coaster ride in the worldwide market.