Rupee Depreciation:
The Indian rupee recently experienced a sharp decline in value against the US dollar after a period of relative stability.Higher domestic prices reduced the real value of the rupee. And inflation-driven production costs made Indian exports less competitive.Increased imports, particularly of crude oil, led to higher demand for foreign currencies.Persistent fiscal imbalances put downward pressure on the rupee. Frequent shifts in RBI’s exchange rate policy led to market uncertainty.
