Indian Rupee has touched all-time lows in recent times. Which of the following holds true in view of falling rupee?
Indian Rupee has touched all-time lows in recent times. Which of the following holds true in view of falling rupee?
[A]Helps exports
[B]Helps imports
[C]Helps FDI/FII inflows
[D]None of the above
Helps exports
A falling Rupee helps exports as the amount earned in Rupees for the same dollars earned by exporters improves. IT and ITES is one of the chief sector benefited by the Rupee slump. Currency devaluation is a blessing in disguise as it boosts exports, but for a country like India where our imports are more it causes devastating effects in terms of CAD and BOP.