Indian rupees plunged to all time low of Rupees 74.48 against the US dollars...the light of the report discuss the impact of situation on indian imports

Dear Student, 
If the indian Rupees plunges to low of the Rupees 74.48 against US dollars . This means that value of Indian Rupees is Depreciated against the US Dollar. So, it will have the impact on Imports of india from the US in the Following ways : 
  • Depreciation of Indian Rupees means more Rupees are requires to exchange for 1 US dollar or 1 US Dollar can buy more and more of Goods in exchange of rupees than before.
  • As, Indians have to pay greater amount of money to trade with US dollar than before , this will  decrease the Imports of goods and services from the US market to India. For ex. Before the depreciation of Rupees , Rs.60 = 1 US$ is used to buy 10 apples but now Rs74 is required to buy 10 apples as $1 = Rs 74  
  • So , Indian Imports will Decrease.
Regards.

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it implies that the indian rupee has depreciated.it means price of US dollars in terms of rupees has increased.for  the same amount of dollars more rupees are to be exchanged..it means imports from US will decrease as it becomes expensive.
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