Rupee fall may push up input cost further for Indian companies

In a bid to stem rupee's loss, the RBI has started intervening in the currency markets, but whether it can do enough at a time when US dollar has started rising, remains to be seen

The Indian rupee’s recent slide is not merely a routine volatility, but something that could be here to stay, experts have started cautioning.

If rupee continues to slide, it would pose a challenge at many levels, not the least on inflation. India imports 70 per cent of its oil requirements, and with crude oil prices rising, the import cost has already gone up. A falling rupee would make imports even more costlier.

A weak rupee, though seemingly good for exporters, would push up input cost further for Indian companies. These companies, according to a recent Reserve Bank of India (RBI)