Causes and consequences of the depreciating Indian rupee

In 1944, delegates from 44 allied nations signed the Bretton Woods Agreement. The establishment of International Monetary Fund (IMF) and declaration of United States (US) dollar as world’s reserve currency were its major outcomes although member countries too got some control over their currency. However, in 1960s, dollar started getting distressed and eventually it was de-linked from the fixed exchange rate regime, although it continued to be accepted worldwide in most of the international transactions. In the recent past, exogenous factors have imparted gained an unprecedented strength to US dollar leading to a fall in the value of other currencies of the world including Indian Rupee. But the fall in Indian Rupee is registered less vis-a-vis other countries. Despite this, the fallouts of depreciating Rupee remained catastrophic for the Indian economy. This study is undertaken to comprehend the causes of fall in Indian Rupee and the steps taken to arrest the fall in Rupee.