Indian currency experienced an all time low in May-2013.  The depreciating value of the currency is a sure-shot sign that something is amiss in the economy. The trend, as experts predict, will continue for some time in spite of heavy foreign fund flows.

Indian currency is shoved down because of one prime reason, i.e. the continuous surge in gold imports. In April 2013, India imported a total gold of worth $7.5 bn. It was a sharp jump from $3.1 bn in March 2013. The total trade deficit of the country was amounting to a total of $17.8 bn in April 2013.

Know Why:

There are various reasons for the downfall of Indian currency in the international market. Some of them are listed below:

Overall, the fall of Indian Rupee against US Dollars is because of dollar buying by RBI, P.Chidambaram’s overseas visits, weak exports, high imports and strengthening US dollar.


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