Rupee depreciation and its impact on investments

Rupee depreciation and its impact on investments

In the recent past, there has been lot of apprehensions on the weakening of our currency, and rightly so. For a perspective on the extent of weakening of INR, over the past few decades, it depreciates on an average 2.5% to 3% per year against the U.S. Dollar.

We as a growing economy import a lot, higher than our exports, and to manage this, our currency depreciates. The issue in the recent past has been that in 2025-26, INR moved from 85.53 to the greenback on March 31, 2025 to 92.76 on March 30, 2026 i.e. a depreciation of 8.45%. If we look at the intermediate low point of 94.71 on March 23, 2026, till that point of time, our currency had depreciated 10.73%. How does this impact you?

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