Declining Value of Indian Rupee

Indian Rupee has lost 10% of its value since its peak in Feb 2012 and currently stands at 54.335 against dollar. This is after numerous interventions from the Reserve Bank of India. According to the experts, this trend is likely to continue and the Indian Rupee could tumble down to 55 against dollar. [lockcontent] This consistent declining trend is due to huge current account deficit, rising inflation, and risk aversion of foreign investors in the current economic environment. The recent Indian budget wasn’t received well in the financial circles as well. Especially, the controversial tax proposals on foreign investment. Unless the Reserve Bank of India takes on some drastic measures to bring down inflation, and reduce its current account deficit, the Indian currency will continue to loose it value against all major currencies. [/lockcontent]

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