Falling rupee – strong dollar, what will be the effect? Study abroad will be expensive, students should plan like this

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Highlights

The rupee came down to Rs 81.20 per dollar against the dollar.
Imports are expensive due to weak rupee, studies abroad also become expensive.
From currency market experts to traders, there is an atmosphere of concern.

Mumbai. The rupee has been depreciating against the dollar in the last few years. Today the rupee has come down to Rs 81.20 per dollar against the dollar in early trade. This fall in the rupee has created an atmosphere of concern for currency market experts to importers and traders. The decline was mainly due to disrupted supply chains due to the Russo-Ukraine war, higher crude oil prices, a stronger dollar overseas, foreign capital outflows and rising interest rates.

However, experts believe that the Reserve Bank will take some steps to stop the ongoing fall in the rupee. To ensure that the rupee does not fall uncontrollably. At the same time, many analysts believe that the rupee may fall further against the dollar in the next few sessions. Because oil prices rise and foreign institutional investors continue to sell.

Also read- Fall in rupee is taking a toll on funding and valuation of startups, what experts say?

Imports will be costlier than weak rupee
The depreciation of the rupee affects the economy in many ways and the Indian economy is also not untouched by it. A weak rupee makes imports costly and hurts domestic production and GDP. At the same time, studying abroad will also be expensive.

The continuing depreciation of the rupee can create a problem for students and their families wishing to study abroad. However, because of this you should not postpone the study abroad plan. Rather these options should be considered…

  • Due to the fall in the rupee, this is a good opportunity to go abroad for studies. Because if the rupee falls further from here, then studying abroad or pursuing a degree can be expensive.
  • This time is a good opportunity for making plans to study abroad. Students should explore the options of scholarship, part time or campus employment in their preferred countries. These alternative funding channels also give the student a good exposure to the corporate world, which makes them better prepared for employment after studies.
  • Also, students who are not planning to take a loan should consider it now considering the possibility of higher interest rates in future. Do not bear the cost of studies from personal/family funds.
  • Students studying abroad should apply for a top-up loan if the rising inflation and depreciation of the rupee have led to a sudden need for more money for living and studies.
  • Students who are already in the US will also be able to transfer more rupees per dollar and invest more in India for their family needs in India.

All in all, this is a good year to go abroad for studies post the Covid-forced hiatus. Don’t let rupee fluctuations hinder your life-changing opportunity.

Tags: Dollar, Medical Students, Rupee weakness

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