The Rupee Depreciation – Can such a crisis occur again?

The Rupee Depreciation – Can such a crisis occur again?

https://www.youtube.com/watch?v=xtRVjm1Lik8 The Indian Rupee hit an all time low of Rs.70/Dollar this week. How does it affect us and the Indian economy? What caused such a downfall? Read on to find out more! Prime Causes of the Downfall The US-Turkey Trade Tensions- Turkey had arrested a USA officials on terrorism charges and refused to release him. The USA in turn, doubled the import duty on steel and aluminium imports from Turkey in order to impose pressure in Turkey.But, the Turkish President declared that the country would boycott American Goods. This, in turn lead to the devaluation of the Turkish Lira, which affected the Economies of various emerging countries, especially India. Non-Deliverable Forward- It is an over the counter derivative contract, with the currency as the underlying assets and is settled in US Dollars. The offshore NDF overseas market doesn’t come under the purview of the RBI. As the Turkish crisis worsened, speculators and arbitrageurs seized the opportunity to buy cheaper dollars in India through the NDF...
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