Greek crisis: Should you be worried as world markets bleed?
World markets tumbled on Monday as Greece imposed capital controls and shut its banks for a week after global creditors refused to extend the country's bailout beyond June 30. A lowdown:business Updated: Jun 30, 2015 08:19 IST
World markets tumbled on Monday as Greece imposed capital controls and shut its banks for a week after global creditors refused to extend the country's bailout beyond June 30. A lowdown:
* Closing value when the article was published.
--> The consequences are unclear.
--> If a deal is not reached, the Greek government could soon run out of euros to meet its spending requirements.
--> This could mark Greece's exit from the Euro zone, forcing the government to issue a new, non-euro currency
--> This could pile further pressure on the country's banking system.
The fall in Sensex on Monday, to close at 27,645.15 points; it had fallen by 602.65 points during the day before recovering much of the losses.
Fall in rupee's value on Monday, to close at Rs 63.84 to a dollar.
Should I be worried?
--> A weak rupee isn't good news if you have plans to study and travel abroad as you could end up paying more to buy dollars.
--> If you are exporter, a weaker rupee would mean your earnings in rupee terms will go up.
--> But a slowdown in EU, India's biggest export markets, may force orders to dry out
--> Companies that borrowed dollars from overseas banks could be hit as repaying loans will become costlier.
--> Weak rupee could fan inflation and push up prices of crude oil and other imported goods