Updated By: LatestGKGS Desk
Reason of fall in rupees prices
The fall in rupee can be primarily contributed by global factors.
As India imports 70percent of its oil needs spent USD 87.7 billion or Rs 5.65 lakh crore on importing 220.43 million tonnes of crude oil in 2017-2018.
There is a 15%drop in the calendar year 2018 as the result rupee has weekend despite the RBI pumping in $25 billion into the market this year.
The central bank usually Sells a dollar from its over $400 billion in foreign exchange reserves in order to defend the currency.
This fall in the currency impacts the common man as prices of fuel, imported items, goods produced in India with raw material imported from abroad, are likely to go up.
A slide in the rupee should keep firms who export happy as their products become more competitive -as is often the case with textiles, leather, gems, and jewelry. Besides individual receiving funds from abroad stand to benefit.
The stock of Indian software companies, which bill their clients in foreign currency, tend to hear northwards when the rupee tumbles.
Thus a depreciation of the currency has been advocated in the past by some to boost export growth.
A weaker rupee is an ineffective and insufficient driver to boost exports.
