Causes of Rupee Dereciation

noreply@blogger.com (Sevak Singh) — Fri, 25 Oct 2013 10:30:00 +0000

Reasons responsible for Rupee depreciation as much as 17% :-

1.Current account deficit:- The increasing demand of dollar and other currencies are making rupee weaker day by day.

2.US - Back on track:- after an slowdown in American economy, US is back on track making rupee sink.

3.Slowdown in Growth rates:- the GDP rate of India has gone below 5% forcing Foreign investors to pull out money from Indian markets.

4.Changing Trend:- trading in the other currency markets like:- Indonesia, South Africa is putting further pressure on the rupee.

5.Unemployment:- People are not getting work and are turning as a liability for government putting pressure on government.

6.Lack of Self-Employment:- India experiences a very less percentage of self employment resulting in unemployment.

7.Less forex reserves: India's exchange reserves are just to cover imports of seven months. The forex reserves have declined very quickly and is a issue of concern

Economic Times

Causes of Rupee Dereciation