Rupee is depreciating against USD relentlessly since last four months and touching new high. The recent spurt to the level of 51 + has open the eyes of Central Banks & Policy maker. As an unusual approach this time RBI has not intervened to arrest the Dollar appreciation against INR. The reason can be anything. The most important reason coming to my mind is that any RBI intervention at this stage will diminish the USD balance of RBI which is not available in plenty. RBI also convinced that the recent INR depreciation started with more of External factor like US Rating down grade and Euro Zone crisis and fall till 49.00 levels. But this time the fall beyond 49.00 is due to both Global and internal factor. FII are exiting the market due to negative business environment around the Globe including India. So many Indian Economic indicators are not so impressive. Inflation is not falling beyond 9.7% , IIP data is at 1.9% , interest rate is rising , GDP growth is showing decreasing trend . All these will lead less corporate profit due to which Stock Index is also moving down. The Excessive Trade & Current account deficit is also cause of concern for India. Fiscal deficit may also give some more worry. So Inside Story is laso now not in good condition. So we cannot blame only Euro zone crisis for the USD appreciation. Among all Asian Currency INR has depreciated the most this year. It is time Indian Government need to announce some good policy decision which can act as a trigger for attracting more foreign Money both in the form of FDI & FII route. This is the only way we can see USD ~INR going back to 46~47 level from here.
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