Since few who read this blog earn in currency other than Rupee or have earned at some point in their lives in a currency other than Rupee, I wonder if exchange rate fluctuation has caused anxiety to you.
Since a part of my earnings is in US Dollars and expenditure is in Rupees; and since the Rupee has been appreciating for the past one year while Inflation is running on a high…my purchasing power has taken a hit on 2 counts:
– My income has reduced because as an exporter of services, I do not earn as much as I used to because of appreciating Rupee.
– My expenditure has increased because for a Rupee spent on a purchase, I need more Rupees today for the same purchase because the price of same goods/services has now inflated.
My Purse has Shrunk! I call this loss “The Curse of Appreciating Rupee”. I empathize with all of you who now realize that even your purse has shrunk a little.
Today allow me to cursorily surf through the dynamics of exchange rate and how it affects our income. Continue reading “My Shrinking Purse – The Curse of Appreciating Rupee! (Understanding Exchange Rate and its effect on Income)”