Your rupee is worth even less today! Unbelievable, Rs 74 mark on horizon

So, you go to work every day and put in the hard labour to earn some money to put food on the table for the family as well as ensure a better education and future for the kids. However, your hard work has suffered a setback over the recent weeks and months as on a daily basis your rupee is worth less and less. Today, it is worth even less! For the first time ever on strong demand for the US dollar from importers amid rising global oil prices, Indian rupee today crashed below the 73 mark against the American currency. In the early trade today, rupee dropped 43 paise to 73.34 against the US dollar at the Interbank Foreign Exchange (forex) market. Now, Rs 74 mark is very much on horizon.
 
The domestic unit opened lower at 73.26 and weakened further to quote at 73.34 a dollar against its previous closing of 72.91 Monday. The rupee on Monday tumbled 43 paise to end at a two-week low of 72.91 against the American dollar on steady capital outflows. 
 
Forex dealers reportedly said that besides strong demand for the US dollar from importers, concerns of fears of rising fiscal deficit and capital outflows mainly weighed on the rupee.
 
Notably, forex market remained closed on Tuesday on account of Gandhi Jayanti.
 
Foreign institutional investors (FIIs) sold shares net worth a net of Rs 1,842 crore on Monday, according to the provisional data. Investors remained concerned over sustained foreign capital outflows and rising crude oil prices crossing the USD 85 per barrel.
 
Oil prices firmed on expectations of a tighter market once US sanctions start targeting Iran`s petroleum industry from next month, although a strong dollar and rising US crude supply curbed gains. Prices however remain at highest levels since November 2014, said a Reuters report.
 
The BSE benchmark Sensex, however, dropped by 137.62 points, or 0.38 per cent, to 36,388.52 in opening trade today. The gauge had gained 299 points on Monday after the RBI announced measures to shore up liquidity. 

Investors were stated to be cautious ahead of the three-day RBI policy review scheduled to begin Wednesday.

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And how will all this impact you? Well, the falling rupee may force the central bank to raise interest rates and this will hit all loan takers. Of course, this would be done to draw foreign money that will rush in to take advantage of the high interest rates! In any case, if you want to travel abroad, or send your kids to school in foreign lands, then again, your rupee would fetch less and less dollars.