25-08-2017, 09:32 PM
Depreciating Rupee Value
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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 its demand is higher than supply. It is the basic theory.
Rupee –> 55.75
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.
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.
HOW CURRENCY DECLINE MAY HURT ?
Investments
Imported items
Foreign travel
Education abroad