Rupee free fall continues, down 7 paise to 66.87
The article reports the continuing fall in Indian Rupee compared to US Dollar. The Rupee is under the depreciating pressure owing to the persistent dollar demand from banks and importers.
Topics include Depreciation, Managed Float Exchange Rate system, Balance of Payments , Marshall Lerner conditions and Effects of Depreciation on the International Trade and economic Growth of the country. Explain the causes and the expected effects of Currency Depreciation using the Exchange Rate diagrams.
Evaluation will cover various strategies to encourage Exports, improve Terms of Trade, Investment, Balance of Payments and pressures on Currency and future International Trade. Also discuss the impact on the Consumers, Domestic producers and Government in short term and long term.