The Indian Rupee hitting the psychological mark of 80 spelled well for domestic exporters while ushering in financial worries among Indian students studying abroad. The Rupee steadied on Tuesday after the currency crossed 80.05 per dollar earlier. But the drop in value against the US Dollar has come as a shock to many.
Students studying abroad
Priyanshi Somani, a native of Surat, Gujarat, left India to study filmmaking at Massachusetts College of Art and Design, Boston in August 2021. Somani told Business Today that the crashing Rupee has had a negative impact on her life, despite the fact that she does not live in India. She stressed the fact that her purchasing power has dropped drastically even though her parents send her the same amount for expenses every month.
Somani said, “My parents send me around Rs 60,000- Rs 70,000 every month to cover rent, food, and other expenses. But lately, I run out of money by the end of the month and have to ask them to help me out again.”
She said that she feels relieved that her fee for the ongoing session has been paid off when the rupee was stronger against the dollar.
“I had moved to Boston in August although my fees for the ongoing scholastic year had been paid off in June or July when the exchange rates were around Rs 72- Rs 74 for USD 1.
I feel in a way it's okay now because my biggest expense living in the US is my tuition fee, which has been paid off when the rates were not so high,” she said.
People getting paid in USD
Although the crash in the value of the Rupee as compared to the US Dollar has spelled trouble for most Indians, some have also benefitted from this crash. Naimish Sanghvi, a contributor to Fintech.tv, an international fintech news platform told Business Today that he gets a part of his salary in US dollars.
He said, “INR falling against the USD benefits those who are paid in USD and I am one of them.”
But Sanghvi also pointed out that this is not the whole picture. He said, “At the same time, everything becomes more expensive. Phones, electronics, and imported regular items all get expensive." He concluded by saying, “So honestly Rupee needs to get stronger.”
Relief for garment exporters
Lalit Thukral, Executive Member, Apparel Export Promotion Council (AEPC) told Business Today that the devaluation of the rupee could mean a short-term relief for exporters. “Exporters, especially those who have been dealing in garments have been facing multiple challenges during the pandemic as orders have been canceled and many consignments dumped. Current rates will lead to a short-term improvement in the earnings because of the increased value of the dollar,” Thukral said.
Also read: Rupee hits 80-mark against US dollar in early trade
Also read: Currency hedging could put more pressure on the Indian Rupee as it hits the 80 mark for the first time
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