Indian Rupee fall by 0.5 per cent to its lowest level seen in 2019. The currency has been under continuous pressure from the US-China trade war and subsequent devaluation of the Chinese Yuan. At the time of reporting, USDINR was trading at 71.868
The last time rupee had gone this low was in February of this year when the Indian currency plunged to 71.717 per US Dollar.
Continuous erosion in the value of rupee does not bode well for the economy which is a nett importer of goods, a major chunk of it being crude oil and edible oil.
Consumers will have to pay 3 per cent more for palm oil, 4 per cent more for soyabean oil and 6 per cent more for sunflower oil. India imports 70% of its annual consumption of edible oil, which is at 23.5 million tonnes.
However, devaluation of rupee is beneficial for the automobile industry