How Rupee Fall Influences Your Investment?

Bangalore: You would have often witnessed Indian currency fluctuations in the international market, where either the value of rupees rises or falls against dollar. This currency fluctuation can affect you investment and the economy of your nation, reports bankbazaar.com

Currency Fluctuation

India doesn't have a fixed value of rupee against dollar but then the value of rupee is also not left completely floating against dollar. The Reserve Bank of India monitors the fluctuation of rupee value within a specified range.

How Does It Impacts Investors

Fluctuation in the value of rupee leading to its rise or fall against dollar will impacts your investments for various reasons. Rupee fluctuations can also impact your export and import of goods in the international market. How?

Rupee Appreciation

It indicates rise in the value of rupee against dollar.

Impact on Economy

Whenever the value of rupee is appreciated, it signifies that Indian economy is gaining strength.

Impact on Import

Companies engaged in import trade will gains a lot from Rupee appreciation, as for them buying goods from international market will get cheaper. It is advisable for investors to invest in companies involved in import business when rupees appreciate.