To the dismay of most Indians citizens, Rupee keeps depreciating. It closed at 57.73 against the US Dollar, nearly 20% higher compared to the levels around 44 in early August 2011. Rupee has weakened by almost 16% in the last 4 months. Because of this depreciation, the imports have become costlier while exports cheaper. Others who feel its significant effect are the Indian Students studying in US. Their monetary load has increased. Some students are planning to squeeze the credits in fewer semesters, in three semesters instead of four. The loans have also increased in burden. And personally I too am very much alarmed at this increased pressure on US bound students from India. The international fees in the US Universities are very high in the first place itself.
This depreciation is also having positive effects in some places like the IT Industry (which also seems as a kind of export, ain't it?).
Every Rs 1 increase in the rupee to dollar rate leads to an increase of around 3.5% in earnings for Infosys Ltd (a leading Indian IT Firm). But the increase in earnings are not so high in case of other firms like Tata Consultancy Services Ltd. I hope the Rupee returns back to its normal rate soon but that does not look very likely.
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