Jan 04, 2023
Today’s edition of our Current Affairs will comprise a discussion on Reasons for Depreciation of Indian Rupee Against the Dollar in 2022. Read further to upgrade your UPSC CSE knowledge and also understand the topic’s relevance to the UPSC syllabus.
For Prelims: Economic and Social Development
Depreciation of Indian Rupee, Crude oil prices, Global Economic Slowdown, Current Account Deficit (CAD).
For Mains: GS Paper III - Indian Economy and issues relating to Planning, Mobilization of Resources, Growth, Development and Employment
About the Rupee in 2022, Reason behind Capital outflows, Impact of Rupee Depreciation on the Indian Economy, The outlook on the rupee for 2023.
In the year 2022, the Indian rupee depreciated by around 10% against the US dollar 2022 on account of the sharp appreciation of the greenback, which resulted from the fear of recession and inflation across many parts of the world and due to the Russia-Ukraine war.
Explain the factors responsible for the decline in the value of the Indian Rupee the vis-a-vis U.S. Dollar recently. How depreciation affects an economy? (150 words, 10 marks)
Image source: Money Control
Also Read: Indian Govt. is pushing for International trade in Rupee
Forex Reserve and Rupee Exchange Rate
Additional Information: Depreciation and Devaluation: It is a fall in the value of a currency. It impacts the exchange rate of a depreciating currency as compared to the currency of other nations. Depreciation of a currency occurs due to factors such as differential interest rate, instability of an economy, political instability, or risk aversion among investors. Depreciation is often confused with the devaluation of a currency. Devaluation is the opposite of revaluation (readjustment of a currency exchange rate).Devaluation of a currency is a monetary policy tool, in which a currency is deliberately adjusted downward to reduce the burden on its currency. |
News Source: The Indian Express, The Times Of India
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Enhance your UPSC CSE preparation with our daily dose of Current Affairs wherein we discuss topics that make news at National and International level. In today’s edit
Enhance your UPSC CSE preparation with our daily dose of Current Affairs wherein we discuss topics that make news at National and International level. In today’s edit
In today’s edition of our Current Affairs, we will discuss What is Green Comet? The topic’s relevance to the UPSC CSE syllabus is mentioned below.
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