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GROUP-5
Hemavani-1103014
Mohd Sarwar Hussain-1101050
Shivanand-1101089
Shanti priya-11030Sharath chandhra-11030
Shruti-11030
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Introduction Rupee depreciation means that rupee has become less
valuable with respect to dollar.
A currency will tend to become more valuable when itsdemand is higher than supply. It is the basic theory.
Rupee > 55.75
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Past Trend
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Reasons for depreciation
ForeignDirectInvestment
Foreign
InstitutionalInvestments
Demandand Supplyof Dollar,
Rupee
RBI
regulator participant
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Reasons (Cont.)Rise in crude oil prices
sudden increase in gold investmentsby Indian savers
Euro Crisis= US benefited
Indias fiscal deficit widening
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Fish bone structure
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The current account is the account that
shows the imports and exports of goods and
services.
The capital account is the account that shows
the money invested by foreigners in India,and money invested by Indians outside the
country.
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EURO CRISIS Greece's problems
Austerity drive: drastic spending cuts, tax rises, and
labor market and pension reforms.
If Greece does not repay its creditors, Italy & Spain will
be affected.
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Europe has two drastic choices:
To create one country by integrating budgetary policy
To separate to single currencies.
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HOW CURRENCY DECLINE MAY HURT ?
Investments
Imported items
Foreign travel
Education abroad
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WHO WILL BENEFIT?
Remittances
Investments
Foreign tourists
Stocks
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Steps by GovernmentRBI allowing banks to setNRE deposits rate
Rupee depreciated by 9%from January
Profit nullified
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How to tackle Rupee depreciation ?
Promote exports by cutting red tape
Focus on fast-tracking infrastructure projects
Face inflation
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Cont Curbing fiscal and current deficit can also go a long
way in supporting rupee.
Phasing out of subsidies in a gradual manner shouldreduce fiscal deficit eliminating the need of deficitfinancing and thereby excess money supply in theeconomy.
Providing tax sops to exporters and access to cheapcredit
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HOW YOU CAN PLAY THE RUPEE?
Currency futures
Mutual funds
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References
www.assocham.org
articles.timesofindia.indiatimes.comwww.hindustantimes.com
www.cigionline.org
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http://www.assocham.org/http://articles.timesofindia.indiatimes.com/http://www.hindustantimes.com/http://www.cigionline.org/http://www.cigionline.org/http://www.hindustantimes.com/http://articles.timesofindia.indiatimes.com/http://www.assocham.org/http://www.assocham.org/7/31/2019 Depreciating Rupee Value
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