How the Rupee Depreciated 66 times in entire 66 Years ?

66 Times Depreciation in entire 66 Years....

Though RBI stubbornly attempts to rescue Rupee value in Dollar exchange, it’s not flourishing. In 1947 during Indian independence former times Dollar value matched with Rupee. In 66 years of Indian freedom Dollar exchange Rupee devalued to 66 times.

Larger extent of devaluation of Rupee assumed from past two years where RBI government announced rapid actions from past few couple of weeks to cease the devaluation of Rupee, but still Dollar demand and Rupee devaluation were not arrested. According to estimation of analysts Dollar exchange value possibly will touch Rs.63 and succeeding it Rs.65. Economist barely can sleep due to depreciation of Rupee. In larger extent historical motives are involved in depreciation of Rupee. Freed from bondage of foreign rule ways adopted for financial progress, struggle for self sufficiency, inevitable wars between neighbor countries altogether and separately influenced Rupee value. Current Prime minister and late financial minister Dr.ManMohan Singh played a key role in dodging regulation of Rupee by the government and entrusting it to market forces.

Foreign investments as anticipated amounted immensely. GDP rate enhanced but it is past glory. Crucial events regarding Rupee After stationing Britishers our national leaders framed constitution where were no debts on foreign Dollar. Prior to it Rupee is matched with pounds. In market Rupee value is equivalent to Dollar. Financial advancement, for people welfare varied policies, programs demanded huge amount of currency Independent India commenced hunt for debts. In part of that Rupee value is lowered. Between 1948- 1966 Dollar exchange Rupee value stabilized at 4.79.

Government solely complied with standard exchange value mode. Due to china war in 1966, war with Pakistan in 1965 Indian financial situation turned upside down. Deficiency in budget agitated the country. Government in Dollar exchange at once devalued Rupee to 7.57 Upto 1971, Rupee value primarily associated with Pound, Government resolved to interrupt this relation and directly linked up with Dollar. In 1975 decided to link up Rupee value with three chief international currencies Dollar, Japan Yen, Germany Mark. Dollar exchange Rupee value is settled at 8.39. In 1985 Dollar exchange Rupee value lowered to 12. In 1991 India buried in immense defrayals crisis.

Unmanageable inflation, closing of foreign exchange reserves, depressed growth rate, because of this Rupee value is still lowered. Dollar exchange value reached Rs.17.90 In history of Rupee year 1993 is extremely important. Government regulating Rupee value determined to allow market forces to assume Dollar exchange value. This single decision lowered Rupee value vastly. Dollar value instantly reached Rs.31.37 In first decade of 2000-2010 Dollar exchange Rupee value was 40-50 midways. Average value of Rupee In these 10 years is 45. In 2007 Rupee value strengthened and arrived at Rs.37.

After the year 2008 again Rupee value set forth to lower. After 2010 depreciation was slim. Lately in the year 2013 all time minimum level Rs.61.80 is reached. International Market Analysts, Local market pros, are unanticipating that government actions will affirm Rupee value. Their notion is government till today did not aimed impregnable action to lower current depreciation. Hence in currency markets short positions on Rupee value are acquired. It signifies that in market there is no faith in increment of Rupee value .