If you are observing Dollar-Rupee trend,Rupee is continuously weakening since few sessions.Its currently trading around 56.72 and few of the research houses have predicted that it will touch level of 60..(its only prediction in reality it may not happen).
Rupee weakening is not related only for traders trading Dollar -Rupee but have direct impact on the life of any individual.
Prices of number of goods / services which are imported are directly affected due to rupee weakness.
The Forex Charts Powered by Investing.com – The Leading Financial Portal.Brent crude oil/Gas/Gasoline/Coal: Crude oil prices are backbones of any economy as it has cascading effect on other goods/services.India is importer of crude oil and mostly crude oil is imported from middle east.Crude oil prices have direct correlation with the currency factor.
Though there is abundant thermal coal available in India,its depend on the imports.
Precious metals: India’s Gold production is very minimal in comparison with the demand.India is among top gold importing countries.With weak rupee its inevitable for gold and silver prices to rise though they are stable in the international market.Same thing is true about silver and platinum.
Books /Other Imported Commodities: Currency fluctuation have direct impact on the prices of imported foreign books.
But remember that there is other side of the story as well.Rupee weakness is beneficial for Indian exporters.Exporters should have offer services based on corrective currency prices and so if in actual if the rate is higher Indian exporters in the areas of software , commodities like turmeric,wheat ,castor seeds etc should gain ..of course if this factor is not hedged.
