Falling Rupee is a boon for some, bane for others

Somebody’s loss is somebody’s gain.

The worst ever fall in rupee value has made a lot of people rich, more so for the ones that are involved in exports. These include the IT/ITES, Spice Traders, Bike/Car manufacturers, Builders etc. and many more. So when the results of some of the traded companies were announced, it was no wonder that they will show a spike in profitability.

So does it mean that we should invest in these businesses? It think the writing on the wall still is that you need to go by what the company is doing, rather than the numbers it shows. Numbers are gimmicks, not intentional, though lead us to believe something that may not be right.

For everyone of us, the rising rupee has put strain on our monthly budgets. Everything from Salt to Petrol to Vegetables have seen price rise due to variety of reasons. Prices of imported goods have increased manifold, and do not come cheap. Things are going to get worse, if the $ value does not change in near future.

For people who travel, decision to make purchases abroad has to be taken with a pinch of salt. When I traveled to US in 2011, the dollar was valued around INR 45.36 and today the rate has raised to INR 61.36 a hike of INR 16 / $. I bought an iPad from US for about INR 22,000 then, and today the iPad price will cost me more than INR 30,000.

So the big question we all ask is, when will we see the Rupee valued back 40 to 50 against dollar?

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