As you guys have seen most of the Asian currency took a hard hit in the forex market. And after Brazilian currency it was Indian currency took which was worst performing against dollar.
Currency of a country depreciates mainly because of "current account deficit". So what is this deficit. It is nothing but the deficit that results when a country's total import cost exceeds total export costs. When this happens we a current account deficit. Due to which the investors move there investment into a better performing country's currency. Thus reducing the current countries fired reserves leaving the value of currency to freely in the global forex market.
Hopefully Rupee recovers faster!
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