What happens when rupee appreciates?

The study talks of an export elasticity of 0.7 to 0.9—that is, a one per cent appreciation of the rupee reduces export growth by 0.7-0.9 per cent—and, more important, says that “going forward, large capital inflows unless fully absorbed through current account deficit and/or mopped up as foreign exchange reserves can …

How does rupee value affect economy?

Imports from other countries will become expensive & exporters will get more rupees for the goods they export. When inflation is too high, sales will be dropped affecting the country’s economy. The rise in inflation will reduce savings from people.

Is the appreciation of Indian rupee good for the economy?

Indian economy is among the fastest growing economies of the world. The appreciation of the rupees against the dollar would be another giant sign towards its economic prosperity and augmentation. However, the economic epidemics like poverty, unemployment etc. , could not be dealt in the short-run.

How does the rupee depreciation affect students in India?

Expenses towards the university/college fee as well as that of living will increase, thereby spelling a huge burden on the students. Indian rupee depreciation will also affect the tourism.

What does devaluation of Indian rupee mean?

In a fixed exchange rate regime the term ‘devaluation’ is used. It means a deliberate downward adjustment of a country’s official exchange rate by its government i.e. central bank (RBI in India) relative to other currencies.

What was the value of Indian rupee in 2008?

The Indian currency has gradually depreciated since the global 2008 economic crisis. To day (15-11-2013) the dollar value is Rs. 63.13. Current Account Deficits (CAD): Deficit in the current account (more imports and fewer exports) is not good for a country, because the country needs to buy more foreign currency to fulfill its need.