Businessmen fear that further depreciation of Rupee amid worsening economy and trade scenario globally will further damage businesses
Local businessmen dealing with fuel, logistics sector as well as gold and jewelry sectors say that their businesses have been hit with weakening of the Rupee, which attained its all time low of 70.3 recently versus Dollar on Tuesday. Businessmen fear that further depreciation of Rupee amid worsening economy and trade scenario globally will further damage businesses.
The Rupee touched its all time low of 70.085 against the Dollar on Tuesday and has been staying below 70 per Dollar since then.
Local players say that sectors that rely on imports will be hit severely because of the weakening of the Rupee. With the country dependent on imports for most of its demand for crude oil, a weaker Rupee will make these commodities costlier. "Fuel is becoming costlier. This will shrink our margins," said Mukesh Dave, executive president of Akhil Gujarat Truck Transport Association. In fact, rising prices of diesel, especially the daily change in the price, was one of the major reasons for eight-day nationwide strike recently by transporters. "The weakening of Rupee will add to our burden," said Dave.
Petrol pump operators said that the move will increase the price of petrol as well, which is consumed by owners of private vehicles. "Whether it is rising price of crude or weakening of Rupee, the fuel for common man becomes costlier. To what extent this weakening of the Rupee will raise the prices of petrol and diesel, we do not know," said Arvind Thakkar, president of the Federation of Gujarat Petroleum Dealers Association.
Another sector that is affected because of the weakening of the Rupee is gold and jewellery. Jigar Soni, vice president of Jewellers Association – Ahmedabad said that price of gold would have fallen much lower had the Rupee not depreciated further, which could have triggered the demand in the market.
CURRENCY, A CURRENT CRISIS
The price of gold has remained around Rs30,600 per 10 grams in local market. It could have dropped to about Rs 30,200 per 10 grams, an expert said. Considering the upcoming festival season, this could have given consumers a lucrative chance to buy ornaments at relatively lower prices.
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