History of Indian Rupee

The Indian rupee, was on a par with the American currency at the time of Independence in 1947.

After independence, India had chosen to adopt a fixed rate

currency regime.

Two consecutive wars, one with China in 1962 and another one with Pakistan in 1965

In 1991, India faced a serious balance of payment crisis.

Present scenario:

Decrease in the value of a currency with respect to other currencies.

If the depreciation in rupee continues, it will further increase

inflation.

Lack of faith. Imports becoming costlier.

Indian Rupee per 1 US dollar, 2013

Objective of the study:

To study Rupee Dollar relationship in terms of rupee depreciation that is dollar appreciation.

To study the ill-effects of excessive fluctuations between rupee and dollar keeping in view current trends.

To study the effect of currency depreciation on common man To study the change in pattern of spending and savings due to

depreciation in the value of rupee in spite of the steps taken by

government and RBI to curb the fall of Indian rupee

(12.06.2013) - Massive devaluation of the Indian Rupee

The loss incurred peaked 8.5%, receding somewhat to 7.8% at an exchange rate of USD/INR 58.00

Indian rupee had fall to about USD/INR 59-60.00

India depends on foreign markets for basic fuel,

technology, critical machineries and equipment, including military hardware.

Reasons for rupee depreciating

Basic law of economics

Price of crude oil

High current account deficit Insufficient FDI inflows

FII outflows
Rising import bill Economic contraction

Strengthening of dollar overseas

Effects of equity market problems on investors Future prospects of INR

Effects of fall of rupee in Indian economy

Affects the money supply in the economy: Grocery Bills Foreign Education Jobs and Remuneration Vacations Buying a Car Entertainment Challenges for Indian Logistic Sector

Measures taken to stabilize the downfall of Indian Rupee

Relaxing of FDI: RBI extends restriction on co-operative banks for loan against gold coins.

Import Duty on Gold increased to 10%

Raghuram Rajan starts with a bang.

Sources and method of data collection:

Methods of data collection:

Primary data collected through structured questionnaire comprising

close ended questions.

Secondary data Websites & Newspapers

Sample design:
Sample Business class people, Service class people, Students & Housewives

Sample Size Reliable 30 respondents

Sampling technique Probability sampling

To what range your monthly expenditure has increased?

After the hit of depreciation, Do you still prefer to buy gold?

After the hit of depreciation, Do you still prefer to invest in stock markets?

Recommendations/Suggestions

Measures by RBI: Using Forex Reserves Raising Interest Rates

Make Investments Attractive

Measures by Government

CONCLUSION