Rupee falls further to 65.88 against dollar

The rupee has fallen to a new six and a half month low against the dollar, further decreasing by 16 paisa. India has followed a floating exchange system since 1975 which means that the value of the currency is determined by the forces of demand and supply.

The vice charman of Niti Aayog, Rajiv Kumar, however, says that the depreciating rupee will be good for India’s economy.

“I think if you got a depreciated rupee, which made your energy costs higher, you will get both lower consumption and less wastage, but also a nice kick towards producing your own domestic renewables and other sources that you can achieve. I am convinced in my mind. The encouragement to export means greater employment,” said Rajiv Kumar in reference to PM Modi’s insistence for domestic substitution for energy imports.

Sources: Financial Express, The Hindu

By: Aayesha Varma, KAGA News