ranjan

Currency Depreciation is fall in the value of in the exchange market. For example, one Dollar rate was Rs.58.66 on 26th May, 2014 which has gone up to Rs.74.07 0n 5th Oct. 2018 four years later. This is the depreciation of  Rupee and appreciation of Dollar. Here are reasons for why rates are varying - 1) Dependency on Oil imports - India is the third country importing crude oil in the world, coming     after U.S. and China. India imports 80% of its oil requirements thereby making it more vulnerable     to changes in the international oil market. For example, if crude oil prices increase , our total     imports cost will also increase affecting our current account balance which in turn affects the     currency market. 2) LIRA connection - Turkey, the middle Eastern country is going through a financial crisis now.     Its relations with U.S. are infringes leading to a weak currency - Lira. Its currency has fallen 40%     against U.S. dollar in the first half of 2018. As is of