Indian Rupee Depreciation: Impact on Economy, Imports, and Inflation Explained
Discover the impact of Indian Rupee depreciation on the economy, imports, and inflation. Learn how the falling Rupee against the US Dollar affects trade, RBI policies, and India's financial stability.
The depreciation of the Indian Rupee has a dual impact on the economy, bringing both advantages and disadvantages. On the negative side, a weaker Rupee increases import costs. The Dollar Index rose by 1.24% to trade at 109.84. The Dollar Index measures the value of the US Dollar compared to a basket of six foreign currencies.
A few days before the Reserve Bank of India's monetary policy review at the end of this week, the Rupee fell below 87 against the US Dollar, raising concerns about imported inflation and the possibility of an increased import bill for the country.
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