Just when it appeared that the economy is moving up, the rupee breached the Rs 45-level mark against the US-dollar on Wednesday for the first time since November, 2006.
A weaker currency means lesser purchasing power, which in turn makes goods and services costlier. Result: an already-high inflation may rise further.
The impact would be felt more on products like consumer durables, as they contain several imported components. The raw material cost would go up.
A weaker currency means lesser purchasing power, which in turn makes goods and services costlier. Result: an already-high inflation may rise further.
The impact would be felt more on products like consumer durables, as they contain several imported components. The raw material cost would go up.
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