O SlideShare utiliza cookies para otimizar a funcionalidade e o desempenho do site, assim como para apresentar publicidade mais relevante aos nossos usuários. Se você continuar a navegar o site, você aceita o uso de cookies. Leia nosso Contrato do Usuário e nossa Política de Privacidade.
O SlideShare utiliza cookies para otimizar a funcionalidade e o desempenho do site, assim como para apresentar publicidade mais relevante aos nossos usuários. Se você continuar a utilizar o site, você aceita o uso de cookies. Leia nossa Política de Privacidade e nosso Contrato do Usuário para obter mais detalhes.
4TH YR. IMBA, UTKAL UNIVERSITY, BBSR, ODISHA, INDIA.
2. Reasons for rupee depreciation
3. Impacts of rupee depreciation
4. Rupee's journey since independence
5. Charts & graphs
After second world war ,
America was one of the
country which had good
economic conditions during
that time America had gold
stock of 25 billion dollar.
Therefore dollar was
considered as global
The basic monetary unit of
India. In 1991 we opened our
economic system for foreign
companies and made fixed
exchange rate on the basis of
demand and supply of dollar.
IMPACTS OF RUPEE DEPRICIATION
1. Increase in Import Bill
2. Higher Inflation
3. Direct Impact on Consumers
4. Overseas Indians
5. Positive impact on mutual fund investors
6. Capital Account Deficit
7. Higher burden of Debt for Companies & Govt.
8. Slowdown of Growth and Unemployment
9. Volatile domestic equity market
REASONS FOR RUPEE
1. Price of crude oil
2. Performance of dollar
with respect to other
3.Volatility in the equity
4. Speculative Trading
5. Contraction of Indian
6. Low Forex Reserves
RUPEE'S JOURNEY SINCE
• The Dollar-Rupee parity of 1947
• Devaluation during the high inflation period of
• The strong dollar period of 1980s
• Devaluation after the economic liberalization of
• Present situation
The rupee’s decline affects everyone in the economy because
it feeds directly and indirectly into general inflation, which is a
continuing problem even as output growth decelerates and therefore
hits common people hard.
Depreciation in rupee is not a permanent phenomenon but it
is due to various reasons, some of which are stated above. Since there
are various internal as well as external reasons behind this situation,
it is not always easy to make situation better in a blink of eye. It takes
time to bring back the situation to the normal state. The RBI and
other government agencies are doing their best to tackle this