Indian rupee hits record low against the dollar

Since 2017, the Indian rupee has fallen 13 percent to reach almost 73 against the U.S. dollar as of 11 September 2018. This sharp depreciation is expected to negatively impact various sectors within the country, eventually affecting India’s economy. With implications of the US-China trade war worsening, this currency depreciation does not bode well for the country’s current account deficit which is estimated to reach 2.5 percent of GDP in fiscal year 2019.

Post the recent nation-wide bandh (strike) across major Indian states to protest rising oil prices, the central government along with the Reserve Bank of India may announce deposit schemes for non-resident Indians that could help the foreign inflow to keep the rupee depreciation in check.