Rupee depreciation against us dollar and its impact on the Indian Economy: An analytical study

The exchange rate between the Indian Rupee and the US Dollar has gone over the roof. In 2011–12 the exchange rate was hovering around the 47–49 rupees per US Dollar level. Over the past one year, the Indian rupee weakened many times and reached its lowest level to Rs. 68.36 for a dollar on 28 August 2013. Indian economy is adversely affected by the Falling value of rupee. Depreciation of rupee makes exports comparatively cheaper for the foreigner and import expensive. This paper reviews the probable reasons for this depreciation of the rupee and its impact on the economy.