The nosedive of the Indian rupee is not coming anytime soon, it appears as the currency made a fresh low of 71 against the dollar on Friday.
The continuous free fall of the rupee has sparked wave of concern for large number of businesses in the country.
The businesses most affected out of this is from the import sector.
Experts are of the view that the rupee’s downward trend will continue till the global climate remains tense.
It need be mentioned that the Indian currency was down 26 paise compared to Thursday’s closing.
With this, it is certain that the fuel prices will climb higher and that the inflation may also surge.
If inflationary pressure continues to mount, the Reserve Bank of India (RBI) will also be to increase key lending rate, which will force banks to charge a higher interest rate on home loans and equated monthly interests (EMI).
Prices of consumer durable commodities such as televisions, smartphones and other household items will also increase due to a falling rupee.>