Since January 2015, the local currency has lost around 12 percent against the US currency. The relationship between the values of local currencies with respect to the foreign currencies and export competitiveness of any country is very complex. The circumstances which have been created for the economy due to the depreciation of rupee against the US dollar reveals that there has been a strong and significant negative impact of this currency volatility on many sectors. This relationship will become more complex if there is the heavy dependence on imported resources into the exported products. From the past one-year Indian rupee weakens many times and reached to a level of ₹68.51 for a dollar in February 2016. Indian economy which already suffered from large fiscal and current account deficit adversely affected by relatively exchange rate pressure. To track it again on the way many hard decisions were taken by Indian Government. Different challenges due to these fluctuations and steps triggered by the central bank and government to create stability.
- The Indian rupee depreciated this week by 0.06 paisa compared with the previous week close.
- Last week Indian rupee closed at ₹71.24 with the aggregate loss of 0.06. paisa
- This week of the last trading day rupee closed at ₹71.30 with the gain of 0.15 paisa against the US dollar.
- Highest gain 0.24 paisa on Tuesday and highest fall 0.56 paisa on Monday