Rupee hits record low of 96.14 as West Asia crisis deepens: What happens to your household budget, travel and investments?

The rupee’s historic slide past 96 against the US dollar, triggered by the West Asia crisis, is set to hike fuel prices, inflate travel budgets and impact investments.

New Delhi: In a major economic development impacting the Indian economy, the Indian rupee slipped below the crucial 96 mark in intraday trade on Friday. Pressured by elevated crude oil prices, a strong dollar and hawkish comments from US policy maker, the Indian currency recorded low of 96.14 against the US dollar. As per the recent update, the rupee opened at 95.86 at the interbank foreign exchange, then lost ground and fell to a record low of 96.14 in intraday trade, registering a fall of 50 paise from its previous close. However, one fact that needs a mention here is how the fall of the Indian Rupee is going to impact the budget of Indian consumers amid the already inflated petrol and diesel prices.

A weaker rupee essentially means your money doesn’t go as far when buying anything from outside India.

1. Impact of falling Indian rupee on Household Budget

• Fuel & Groceries: Since crude oil is bought in dollars, petrol and diesel prices usually rise due to falling dollar, leading to increased transport costs, making everyday items like vegetables and milk more expensive.

• Electronics: Prices for smartphones, laptops and appliances may go up because the components are imported.

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2. Impact of falling Indian rupee on foreign travel

3. Impact of falling Indian rupee on your Investments

• Winners: Companies that export goods (like IT and Pharma) usually see higher profits because they earn in dollars.

• Losers: Companies that rely on imports (like Aviation, Paints, and Tech) face higher costs, which can hurt their stock prices.

• US Funds: If you own US-based mutual funds, their value in your portfolio will actually increase because the underlying dollars are now worth more.

Also read: Government tells why prices of diesel and petrol are hiked, compares India’s data with other countries

Rupee hits record low of 96.14 against US dollar

The Indian rupee touching the 96 mark against the US dollar remained one of the major concerns for investors during the session.

Also read: Big relief for flyers amid West Asia crisis as Maharashtra cuts ATF VAT to 7% to ease airfare pressure

Impact of falling rupee on Indian stock market

The rupee weakened to a fresh record low of 95.96 before closing with a marginal gain of 2 paise at 95.64 against the US dollar on Thursday. The domestic equity markets ended the week under pressure on Friday as investor sentiment weakened after the rupee touched a historic low of 96 against the US dollar.

The benchmark Nifty 50 index closed at 23,643.50, declining by 46.10 points or 0.19 per cent, while the BSE Sensex settled at 75,237.99, down by 160.73 points or 0.21 per cent.