ForumIAS announcing GS Foundation Program for UPSC CSE 2025-26 from 19 April. Click Here for more information.
ForumIAS Answer Writing Focus Group (AWFG) for Mains 2024 commencing from 24th June 2024. The Entrance Test for the program will be held on 28th April 2024 at 9 AM. To know more about the program visit: https://forumias.com/blog/awfg2024
Rupee depreciation
News:
- The Indian rupee recently fell below 68.07 against the U.S. dollar, lowest level in 16 months.
Important facts:
2. The rupee has weakened 6.2% in 2018. This is due to:
- Rise in crude oil prices,
- rising geopolitical tensions in West Asia, and
- Decreasing global supply.
3. India’s merchandise exports are in a poor position. As for example:
- April, 2018 had a decline in exports from employment-intensive sectors.
- The value of oil and petroleum product imports increased by 41.5% from last year.
- Investors in search of higher risk-adjusted yields have started to pull money out of emerging markets.
- Yields on emerging market bonds have risen as investors sold them off aggressively.
4. Measures to increase exports:
- Facilitate swifter GST refunds and
- Taking on tariff and non-tariff barriers from the developed world.
5. Efforts to diversify India’s energy sector also needs to be stressed.
