Main Article Content
Currency depreciation is a fall in the value of a currency in a floating exchange rate system. As the country adopted such system, the rate of Indian rupee with another currency is determined by market forces such as supply and demand. Currently Indian rupee depreciation is become the main topic in Indian economy. The value of Indian rupee declined more than 60 percent, during the past ten years. Since 2010, the rupee value declined rapidly, i.e. one US dollar equals Rs. 45.71 in 2010. But now (in 2019) one USD equals 71.80 INR, which is an all time low on 09 October 2018 (Rs.74.39/US dollar). The declining rupee make negative impacts on various sectors which may decide the GDP of India. The dependency on imports, current account deficit (CAD) and fiscal deficit affected the economy adversely. In this paper, I try to explore the various factors of rupee depreciation, the consequences that makes in country’s economy and discussed what can we do to beat such bad economic enemy.