Optimize IAS
  • Home
  • About Us
  • Free Initiatives
    • Daily Practice Sheets
    • Daily Prelims Notes
    • Prelims Power Play
    • Friday Factly
    • Sunday Essay Sadhna
    • Mains Master Notes
  • My Mentorship
    • Prelims 2023
      • Laqshya 2023
      • Laqshya 2023 OPTIMA
    • Personalized Guidance 2023
      • ARJUNA Prime 2023
      • ARJUNA 2023
    • DPS Prime
    • ESSAY MASTER CLASS 2023
    • ETHICS MASTER CLASS 2023
    • Mains 2022
      • Mains Optima (Current)
      • Mains Mentorship Program (Static)
    • Know More
  • Downloads
    • PSIR Notes
    • General Studies Notes
    • UPSC Mains Previous Year Papers
  • Login
  • Home
  • About Us
  • Free Initiatives
    • Daily Practice Sheets
    • Daily Prelims Notes
    • Prelims Power Play
    • Friday Factly
    • Sunday Essay Sadhna
    • Mains Master Notes
  • My Mentorship
    • Prelims 2023
      • Laqshya 2023
      • Laqshya 2023 OPTIMA
    • Personalized Guidance 2023
      • ARJUNA Prime 2023
      • ARJUNA 2023
    • DPS Prime
    • ESSAY MASTER CLASS 2023
    • ETHICS MASTER CLASS 2023
    • Mains 2022
      • Mains Optima (Current)
      • Mains Mentorship Program (Static)
    • Know More
  • Downloads
    • PSIR Notes
    • General Studies Notes
    • UPSC Mains Previous Year Papers
  • Login

Rupee Depreciation

  • December 16, 2021
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
No Comments
Print Friendly, PDF & Email

 

 

Rupee Depreciation

Subject – Economy

Context – FPI outflow, fears over US Fed taper pull Re below 76-mark

Concept –

  • Currency depreciation is a fall in the value of a currency in a floating exchange rate system.
  • In a floating exchange rate system, market forces (based on demand and supply of a currency) determine the value of a currency.
  • Rupee depreciation means that rupee has become less valuable with respect to dollar.
  • Some of the factors that influence the value of a currency:
    • Inflation
    • Interest rates
    • Trade deficit
    • Macroeconomic policies
    • Equity market
  • Currency depreciation increases a country’s export activity as its products and services become cheaper to buy.
  • The RBI intervenes in the currency market to support the rupee as a weak domestic unit can increase a country’s import bill.

In News –

  • The rupee fell below the 76 per US dollar level as foreign fund outflows intensified following global strengthening of the US dollar ahead of the US Federal Reserve meet.
  • According to analysts, the rupee weakened as the dollar index surged after wholesale price in the US rose to record highs.
  • The rupee fall is expected to push up import costs while exporters may benefit from the dollar’s rise.
  • The rate hike could spur capital outflows from emerging markets like India and weigh on the local unit.
economy RUPEE DEPRECIATION
Print Friendly, PDF & Email
Loading

Recent Posts

  • Prelims Power Play 18 August 2022 August 19, 2022
  • Daily Practice Sheet 19 August 2022 August 19, 2022
  • Discuss ethical issues concerning fund utilization in the government. August 19, 2022
  • FDI is an important monetary source for India’s economic development. In this context critically examine the recent events of many global manufacturing exiting India. August 19, 2022
  • What do you understand by stagflation? August 19, 2022
  • What are freebies? How are they different from welfare schemes? Discuss their implications? August 19, 2022
  • Analyze the present MSP regime? Can higher MSP alone ensure higher production and productivity or crop diversification? August 19, 2022
  • Discuss the strategic and economic importance of Gulf region for India. Assess India’s ties with gulf. August 19, 2022
  • Who are Rohingyas? Examine the problems faced by them. In this context, critically examine India’s refugee policy. August 19, 2022
  • Critically review the policies of Lord Curzon. What was their impact on National Movement? August 19, 2022

About

If IAS is your destination, begin your journey with Optimize IAS.

Hi There, I am Santosh I have the unique distinction of clearing all 6 UPSC CSE Prelims with huge margins.

I mastered the art of clearing UPSC CSE Prelims and in the process devised an unbeatable strategy to ace Prelims which many students struggle to do.

Free Initiatives

  • Daily Practice Sheets
  • Daily Prelims Notes
  • Friday Factly
  • Prelims Power Play
  • Sunday Essay Sadhna

My Proven Strategy

  • Interview Strategy
  • Mains Strategy
  • Motivational
  • Prelims Strategy

Contact us

moc.saiezimitpo@tcatnoc

For More Details

Work with Us

Connect With Me

Santosh Pandey Quora Santosh Sir Telegram Santosh Sir Youtube Optimize IAS Instagram

Course Portal
Search