Rupee is depreciating against dollar. Lets check its impact on existing portfolio and Indian Stock market
What is the impact of Rupee depreciation on stock market? And which sectors will get affected and which sectors will be benefited? As on 18th July 2022 , the rupee has depreciated to a record 79.88 against the USD implying that rupee has become less valuable and weaker against the dollar. But the question arises how does this fall is impacting our Indian stock market. Let's understand what is currency depreciation? Currency depreciation is a fall in the value of a currency in terms of its exchange rate versus other currencies. Currency depreciation can occur due to factors such as economic fundamentals, interest rate differentials, political instability, or risk aversion among investors. WHY THE RUPEE IS FALLING? The reasons behind the rupee falling are many. In these recent times , the rupee has been constantly falling because of major outflows in foreign capital. A currency falls or rises due to simple demand and supply. India’s imports exceed its exports by $13.4 billion. This r