Current account deficit influences the INR!

Current account shows the records of exports and imports of both the material goods and services of a country with the rest of the world. In fact, the current account deficit is the difference between the visible and invisible exports and visible and invisible imports of a nation with the rest of the world. When our receipts are less than the payments which we make for the purchase of both the goods and services we face the deficit in our current account. As per the latest data, India’s current account deficit has increased to 15.8 billion US $ or 2.4 percent of the GDP. The drastic decrease in the exports has added fuel to troubled waters. They say that unnecessary delay in the clearance and approval of various development proposals too has aggravated the situation and we face the problem of dollar crunch. Consequently, we are forced to spend from the foreign exchange reserves for making the payments for all the imports. Most distressing things have been the ever-increasing import bill of gold and crude oil puts heavy pressure on the foreign exchange reserves and finally our current account deficit goes on worsening. That is why there is an unprecedented rise in the demand for the dollars which results in the appreciation of its value and finally the value of rupee weakens.

  • The Indian rupee depreciated this week by 0.20 paisa loss compared with the previous week close.
  • Last week Indian rupee closed at ₹68.95 with a gain of ₹0.14 only.
  • This week on Friday rupee closed at ₹69.15 with gain of 0.19 paisa on Friday.
  • Highest gain 0.19 paisa on Friday and highest fall 0.47 paisa on Thursday.

Leave a Reply

Your email address will not be published. Required fields are marked *

Latest News & Article

Financial Advisory Services at Your Door Step.

If your occcupied don't have time to plan your financial investment we are here to guide.