Indian Rupee in Jitters Despite Falling Crude Oil Price and Easing Inflationary Situation

Abstract

While the Indian economy has been struggling to regain the glory of that 9 plus percent pre-subprime crisis growth, the Indian Rupee has depreciated alarmingly against the US Dollar creating certain cognizable risks for the economy. The twin problems of the economy's slowdown and rupee depreciation are not quite unrelated - in fact, one has led to the other! Till the beginning of the financial year 2011-12 very few had expected Rupee to depreciate with most hinting towards either appreciation or status quo in the exchange rate.