How Does Rupee Devaluation Impact the Average Consumer? 

Ever since the Rupee has hit an all time low in terms of its dollar value, many news articles have discussed the potential impacts businesses, industries and organisations may have to face due to the devaluing rupee. Today, let’s go over how the devaluing rupee may impact the average consumer, people like you and me. 

One of the biggest ways the rupee devaluation may impact you is that the cost of travelling and studying abroad is going to witness a sharp rise. Recently, there has been an increasing trend of students going abroad to study and international borders opening up after COVID-19 only increased the number of students travelling abroad to study. Your living costs may shoot up, especially if you depend on your parents to send you money from India. The only way to combat this is to start earning money abroad so that the currency you earn in can sustain your lifestyle abroad. 
The devaluation of the Rupee can also make your investment portfolios decline in profitability. Foreign investors seem to be pulling out of Indian markets faster than ever and the exit of foreign investors from the economy resulted in a sharp fall in the equity markets. If the devaluation of the rupee continues and leads to a rise in inflation, there is a good chance that the RBI will increase interest rates. This may reduce earnings from Debt Funds as they perform poorly during increasing interest rate scenarios. 

Also Read: Rupee Hits All Time Low, Should We Be Concerned?

The rising price of fuel may rise even higher as the Rupee keeps devaluing. The drop in its value makes importing oil even more expensive. The price of oil is extremely sensitive on Tuesday. Following the recent attacks on Saudi’s oil facilities, the price of petrol went up by 18 paise and the price of diesel went up by 33 paise. A continued fall in the value of the Rupee is bound to make your everyday commutes and activities more expensive. If you have set out a monthly budget for fuel, it might be time to reconsider that.