Friday, May 18, 2012

Rupee depreciates 47% in 20 years!

Since August 2011, one of the biggest concerns for the Indian economy has been the rapid decline in the value of the rupee. Moreover, there seems to be no end to this fall. With the rupee now touching an exchange rate of about Rs 54.8 per US dollar, the Indian currency continues to set newer records, albeit, on the lower side. In fact, this is not an anomaly but a long term trend. If you look at the rupee-dollar exchange rates over the past two decades, the rupee has continuously lost value against the dollar. In 1992, you could buy a dollar for just Rs 28.95. The same dollar would now cost you close to Rs 54.8. That means the rupee's value against the dollar has dropped by a strong 47% in the last 20 years.

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