Wednesday, 17 July 2013

IMPACT OF RISING DOLLAR ON ECONOMY

All eyes are on the rupee which has fallen in value against the US dollar. It has racked up macroeconomic issues concerning the slow economic growth, corporate earnings and market volatility. It is the common man who is going to hit the most.The falling rupee and the rising dollar can be translated into more expensive foreign holidays, educations or products. 

The Fast Moving Consumer Goods like soaps and shampoos require imported raw material. The cost pressure on companies will lead them to revise the prices of their products. The prices of pulses and oil which are largely imported are going to see a rise in prices....

Students heading abroad should get prepared to shell out more for their education and living expenses. Students taking loans for their overseas education too will be affected. They get their loan in Indian rupees but have to pay in foreign currency. “Be prepared for shrinking pay packages. Industries that depend on imported raw material will cut costs either by reducing salaries or human resources.
This, however, does not apply for jobs that are paid in dollars. Vacationers are going to feel the heat of the rising dollar. The airfares, stay, shopping and food will be more expensive. However, those who got their holiday packages before the depreciation of the rupee are safe for the moment.Car companies are already revising their prices as they are dependent on imported raw material, pay royalties to their parent firms and have loans and borrowings in foreign currency. Consumers of imported paperbacks and gizmos should gear up to pay more. International food chains spend on imported kitchen equipment and some amount of raw material. Eating in these outlets will see a significant rise in expenditure.
If The weakening rupee has seen a boost in demand overseas of spices and commodities.

3 comments:

  1. This is wonderful! I travel lots for work and am always trying to figure out how can i trade option?

    ReplyDelete
  2. We congratulate you for creating such wonderful blog . at http://www.intradaytips.com

    ReplyDelete
  3. I have enjoyed reading your articles. It is well written. It looks like you spend a large amount of time and
    STOCK TIPS blog.I am appreciating your effort.

    ReplyDelete