Depreciation of Rupees, Weighs High on Indian Economy

The fall in the value of rupees against US dollar has been continuing jolting the economy, which has already been facing the music of economic slowdown. The rupees is around 63 against the US dollar and 100 against GBP (Great Britain Pound). The depreciation of rupees has been affecting the household budget of all the people of India including poor, middle class and rich.

The government has been trying to bring stop the bleeding rupees in the currency market, but it seems that it is big challenge to keep the loss in short-term. To check the loss, the apex bank has changed most of it policies over the liquidity, gold import and investing in abroad.

But the result seems unchanged from the earlier scenario. The prices of the fuel in India are directly being affected with the value of rupees in the international currency market. And change in its value is enough tumble the prices of petrol and diesel in India. Once the rupee was at 35 against the US dollar, but now the scenario is just opposite.

As a custodian the apex bank would make further changes in its mechanism to stop the loss of the value of rupees in the international currency market. On the other hand, the political factor and food security bill introduction could be the major setback for the economy; those pushed the rupees against US dollar to a new low.