Q.3 How is the recent depreciation of the rupee different from its depreciation between 2008-2012? What are the factors responsible for the recent appreciation of the dollar? (10 Marks)

Mentor’s comment-
  • https://indianexpress.com/article/opinion/columns/why-there-is-no-reason-to-panic-over-the-rupee-8039724/
  • In the intro, mention the recent all time low reached by rupee.
  • In the body, mention the relationship between the domestic fundamentals and value of the currency. Next mention the weak domestic fundamentals responsible for depreciation between 2008-2012. Also mention the relationship now between the increase in the dollar index and depreciation of rupee in the aftermath of Ukraine war. In the next part mention the policy rate normalisation in the US, and lag in the Eurozone and other economies resulting in appreciation of dollar.
  • Conclude by mentioning that the dollar will continue to remain strong in the near future.
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chandan mahabaliah
chandan mahabaliah
22 days ago

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chandana
chandana
22 days ago

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believing is seeing
believing is seeing
19 days ago

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