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Rajan Paswan
Stealth • 4m
Bad News: Rupee falls to record low 83.60/$ Here are negative impacts of falling Rupee: 1) Increased Costs for Imports: Many Indian businesses rely on imported goods and raw materials. A weaker rupee means they will have to pay more for these imports, which can increase operational costs and reduce profit margins. 2) Higher Inflation: The increased cost of imports can contribute to higher inflation within the country. This can lead to higher prices for goods and services, affecting consumer purchasing power and overall economic stability. 3) Impact on Funding: Startups, in particular, often depend on foreign investments. A depreciating rupee can make Indian assets less attractive to foreign investors, potentially leading to a reduction in available funding for new and existing ventures. 4) Debt Servicing Costs: Many Indian companies have debt denominated in foreign currencies. A weaker rupee increases the cost of servicing these debts, putting additional financial strain.
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