RBI steps in to hold rupee fall



The article reports depreciation of Rupee against major currencies, US INR/USD Exchange rates in particular. This Fall in value of Indian Rupee has forced the Indian Central Bank to intervene in Foreign Exchange market and increase the Interest Rates .


The topics covered are determinants of Exchange Rate, Effects of Inflation and Interest rates on Exchange rates, Contractionary Monetary Policy and Floating Exchange rate system. Explain using the Exchange Rate diagrams.


Evaluation will include the short term and long term effects of depreciation on Current Account , Balance of payments , Exporters, Importers, Consumers, workers, domestic producers and Government.