Fall in Rupee Value – Causes, Impacts and Measures
From Current Affairs Notes for UPSC » Editorials & In-depths » This topic
Why in news?
For the first time in history, Indian rupee fallen into a record low of Rs. 70 against USD on 14 August 2018. This sudden depreciation was also seen in other currencies of emerging markets.What are the reasons for the depreciation?
Considerable outflow of Foreign Institutional Investment (FII).- US Federal Reserve notified that it will increase the policy rate at least two more times in 2018, which means decrease in dollar supply = High demand for USD among investors.
- Thus the increased demand for US dollar made FIIs pull out from Indian stock markets and move towards destinations with better returns.
- Turkish currency has been in free fall due to political and economic problems in Turkey.
- Turkish currency cris
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