Rupee at record low, breaches 80-mark against US dollar: Here's how it may impact you

News Network
July 19, 2022

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New Delhi, July 19: The Indian currency depreciated for the eighth consecutive session on Tuesday to fall past 80-mark against the US dollar for the first-time ever.

At the interbank forex market, rupee was trading at 79.93 at 9.31am, after breaching the 80-mark against the US dollar- a historic low for the Indian currency. It sank to 80.06 against dollar in opening trade.

The rupee had ended at 79.97 on Monday.

The US dollar extended its rally and hovered just above a one-week low reached overnight versus major peers as markets reduced the odds of a percentage-point Federal Reserve rate hike this month.

The local currency has now declined over 7 per cent since the start of this year. It was at Rs 78.94 per dollar as of June 30 and rapidly plunged to touch the Rs 80-mark in the next few sessions.

If we compare with historical data, since December 2014, the value of the rupee declined from 63.33 against a dollar on December 31, 2014, to 80.06 today -- that is, a depreciation of 26.27 per cent.

However, rupee's loss meant gains for the US dollar. In fact, the US currency has had a wonderful stretch. Since the start of the year, it has gained almost 8 per cent.

On the flip side, a rising dollar is surely not a favourable scenario for Indian rupee. The rupee has been staggering since the beginning of the year and has fallen 7.72 per cent so far.

The surprise rate hike by Reserve Bank of India's (RBI) monetary policy committee (MPC) last month could not stop rupee's decline as a widening current account deficit came to the forefront after the country's June trade deficit hit a record high, raising concerns. In fact, it seems to have heightened volatility.

How it may impact you

From imports to exports to travel abroad to foreign studies, a falling rupee impacts our lives in several ways.

Imports to be more expensive: The primary and immediate impact of a depreciating rupee is on the importers as they need to spend more for same quantity and price.

The basket of Indian imports includes crude oil, coal, plastic material, chemicals, electronic goods, vegetable oil, fertiliser, machinery, gold, pearls, precious and semi-precious stones, and iron and steel.

With the dip in the rupee, importing items will get more expensive. Not just oil but electronic items, such as mobile phones, some cars and appliances, are likely to get expensive.

The falling rupee is also likely to impact spending decisions of households as certain things may become expensive.

Boost for exports: While imports become costlier, exports from India will become cheaper. It is a boon for the exporters as they receive more rupees in exchange for dollars.

Pay more for foreign studies: For people looking to study abroad during this time, the fees amount will rise as a dollar would now cost more in terms of rupee than earlier. Prospective students or even existing ones may face a hike in their spending.

Foreign trips to cost more: Another major impact of falling rupee might be felt on the tourism sector. With Covid-19 cases remaining in control, many people would want to resume their abroad travel plans. Such people might end up spending much higher than they would have a few days back.

More values for remittances: In terms of remittances, or the money that people residing abroad send to their families back home in India, they will end up sending more in terms of rupee value.

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News Network
May 14,2025

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Border Security Force (BSF) jawan Purnam Kumar Shaw who was in Pakistan’s custody since April 23, has been handed over to India. The BSF said in a statement that Shaw was handed over to India at 10:30 am through the Attari border check post in Amritsar. 

BSF stated that Shaw is being debriefed after his handover. 

The handover was conducted peacefully and in accordance with established protocols, said the force. 

"With the consistent efforts of BSF through regular flag meetings with Pakistan rangers and through other communication channels, the repatriation of BSF constable has become possible," said BSF. 

Shaw, a jawan of the 182nd Battalion, was detained by the Pakistan Rangers after he inadvertently crossed the International Border near Punjab’s Ferozepur. 

The jawan on duty was stationed near the border fence. He was in uniform and was carrying his service rifle, when he moved towards a shaded area for some rest. In doing so, he had crossed into Pakistani territory, where he was apprehended by the Pakistani Rangers. 

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News Network
May 10,2025

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In a significant escalation of hostilities, the Indian Army has reported that Pakistan targeted critical civilian infrastructure, including hospitals and school premises, in Srinagar, Awantipur, and Udhampur. This incident marks a severe breach of international norms, with Pakistan's actions drawing widespread condemnation.

Details of the Attacks

Wing Commander Vyomika Singh, during a press briefing, said that Pakistan's military launched attacks on Indian Army hospitals and educational institutions in these regions. The targeted facilities are located within or near military airbases, raising concerns about the deliberate targeting of civilian infrastructure. The attacks have resulted in significant damage to these establishments, though specific casualty figures are yet to be confirmed.

Indian Army's Response

The Indian Army has termed these actions as "unacceptable" and a direct violation of international humanitarian law. In retaliation, India has initiated "Operation Sindoor," a series of strikes targeting Pakistani military bases and terrorist infrastructure. The operation aims to dismantle terror networks operating from across the border and to send a strong message against such provocations.

The international community has expressed grave concern over the escalation. The United Nations has called for maximum restraint from both nations to prevent further deterioration of the situation. Countries like the United States, Russia, and China have urged India and Pakistan to engage in dialogue and de-escalate tensions.

As of now, the situation remains tense. Both nations have mobilized additional troops along the Line of Control (LoC), and airspace in the affected regions has been restricted. Civilians in the targeted areas have been advised to stay indoors, and emergency services are on high alert to respond to any further incidents.

This development marks a significant turning point in the ongoing India-Pakistan tensions, with the targeting of civilian infrastructure raising the stakes of the conflict. The coming days will be crucial in determining the trajectory of relations between the two nuclear-armed neighbors.

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News Network
May 13,2025

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Srinagar: Following an unprecedented episode of intense cross-border shelling by the Pakistan Army that directly targeted the towns of Rajouri and Poonch in Jammu and Kashmir, the Indian government is moving to construct community bunkers in these towns and other vulnerable areas along the Line of Control (LoC).

While the government has, over the past decade, supported the construction of both individual and community bunkers along the LoC and the International Border (IB), towns like Rajouri and Poonch had been excluded from such initiatives. These towns were considered safe, as previous shelling incidents were largely restricted to forward villages closer to the border.

Officials now say the latest shelling marks a dangerous shift in the pattern of cross-border hostilities.

“The nature and intensity of the attack marked a significant departure from past ceasefire violations. For the first time in years, heavily populated towns like Rajouri and Poonch were directly hit,” a senior official said.

Caught unprepared, residents in both towns had little access to protective infrastructure as long-range mortar shells struck deep inside civilian areas.

“People weren’t expecting this—these towns had never been targeted before. Without bunkers, many had nowhere to go for safety,” the official added.

In response, the government now plans to build community bunkers at strategic locations throughout Rajouri and Poonch. These reinforced shelters will offer immediate protection to civilians during any future shelling incidents.

“In areas where individual bunkers aren't viable, community shelters become essential. These will provide residents with quick access to safety in emergencies,” the official noted.

The attacks have left local communities rattled.

“This is the first time shells landed so close to our homes in Poonch town,” said Abdul Rashid, a resident. “We never thought this would happen here.”

The sudden escalation has disrupted the fragile calm along the LoC, raising concerns over a potential return to more violent confrontations in the region.

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