As of 11 September 2018, the Indian rupee has fallen 13 percent to reach almost 73 against the U.S. dollar. The currency depreciation is expected to negatively impact various sectors of the country, affecting India’s economy.
This currency depreciation is not good for the country’s current account deficit which is estimated to reach 2.5 percent of GDP in the fiscal year of 2019.
Indian states recently protested against the rise in oil prices. The central government along with the Reserve Bank of India may announce deposit schemes for non-resident Indians. It could help the foreign inflow to keep the rupee depreciation in check.
Image source: https://www.statista.com/chart/15431/indian-rupee-against-the-dollar/
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