The Indian Rupee hits a 15-month low of 67.17 against the US Dollar due to the continuous selling pressure on Indian Equities by the Foreign Institutional Investors (FIIs) and the surging price of Crude Oil hitting $75 per barrel in the global commodity market.

The Chief Market Strategist at Geojit Financial Services, Anand James said, "FIIs continue to be net sellers in Indian equities, adding further pressure on the rupee. To this end, CPI release scheduled for later this week will be viewed with interest. Markets participants also watched the RBI's recent move to conduct OMO; to buy government bonds worth up to Rs.10,000 crore on 17 May."

On the other hand, Oil importing companies are conducting bulk buying of US Dollar which adds further pressure on the Indian Currency.

Brent Crude is trading at 42-month high as the clouds of re-imposing sanctions on Iran are looming in as a possible threat by the United States.

After the outcome of US Jobs and Wages Data, the Dollar has strengthened further which resulted in a deleterious impact on emerging markets. The US currency is at the peak of 2018.

16 out of 18 Forex currency trading experts foresee Rupee to hit the 70 dollar mark or beyond by the end of this financial year and if it happens to be true, we can face some serious consequence.

The negative impact of weakening rupee

When rupee weakens against the dollar, the cost of imported products rises drastically. Some imports, like oil, can’t be slashed due to the needful demand in the country and if done so, it can have a negative impact on the Current Account Deficit (CAD) of India.

Oil is India’s chief import. And when rupee depreciates, oil becomes costlier which further means that the transportation cost shoots up following the rise of prices in groceries as well.

A weak rupee also makes International trips and education very expensive. The products that use imported components in SmartPhones, Tablets, computers and cars also tend to become costlier.

Broadly, the entire import based industry has to endure the pain.

The positive impact of weakening rupee

There’s not all in all doomsday awaits for everyone. It’s a boon in disguise for all the export-based companies. Exporters make a lot of money when Dollar strengthens, or rupee weakens. The industries that benefit from weak rupee includes, but not limited to, Pharma and Information Technology (IT).

The revenue of these industries mainly relies on the appreciation of foreign currencies.

When Rupee was at 64 level, it was hurting the export sector. However, 67 rupee mark might prove a justified standard for the exchange rates. Economic Affairs Secretary Subhash Chandra Garg said, "I sense that there is stability now and this level of about 66-67 (to a dollar) should be the level that should prevail for some time."