How the nation affecting by the Indian rupee fall?

The fall in the value of currency not only affects the pride of a nation, but also affects a lot of economic growth indicators. Depreciation of rupee reduces the inflow of foreign capital, the rise in the external debt pressure, and also grow India’s oil and fertilizer bills. The most positive impact of depreciation of rupee is the stimulation of exports and discouraging imports and thus improving the current account deficit. For a country such as India, imports are unavoidable. Hence the Reserve Bank of India and the ruling government should take steps to improve capital inflow in the form of Foreign Direct Investments (FDIs) and Foreign Institutional Investments (FIIs). Along with the above, overall improvement in the economy may also help Indian Rupee to appreciate. India used to be a very attractive investment avenue. The stock market was flooded with foreign investments. This earlier had led to a meteoric rise in the S&P Sensex. But the depreciating rupee brought the trend down. Due to uncertainty in Indian markets, investors are pulling out the money from Indian markets and are investing in safe investments like Gold and US Bonds.

  • The Indian rupee depreciated this week by 0.65 paisa loss compared with the previous week close.
  • Last week Indian rupee closed at ₹69.36 with aggregate loss of 0.20 paisa only.
  • Current week i.e. on Friday Indian rupee closed at ₹70.01 with gain of 0.24 paisa.
  • Highest gain 0.24 paisa on Friday and highest fall 0.38 paisa on Thursday.

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