17. The past few months have seen a sharp depreciation in the value of Indian Rupee...

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17. The past few months have seen a sharp depreciation in the value of Indian Rupee against the US Dollar (US$). From about Rs. 72 per US dollar in early-March 2021, the rate now stands around Rs 75. Questions: (a) (b) PART C (1 × 20 = 20 marks) (Compulsory) (c) When the rupee moves from 72 per US dollar to 75 per US dollar, why do we call it 'depreciation' and not appreciation' given that the rupee has risen against the dollar? Everyone is saying that the depreciating rupee will make things expensive. How? What about things that India exports? 17. The past few months have seen a sharp depreciation in the value of Indian Rupee against the US Dollar (US$). From about Rs. 72 per US dollar in early-March 2021, the rate now stands around Rs 75. Questions: (a) (b) PART C (1 × 20 = 20 marks) (Compulsory) (c) When the rupee moves from 72 per US dollar to 75 per US dollar, why do we call it 'depreciation' and not appreciation' given that the rupee has risen against the dollar? Everyone is saying that the depreciating rupee will make things expensive. How? What about things that India exports?

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Introduction Currency exchange rates play a crucial role in international trade and economics The exchange rate between two currencies such as the Ind... View the full answer