Rupee depreciation refers to the fall in the value of the Indian rupee against other currencies, primarily driven by market forces such as high import demand, capital outflows, and global dollar strength. While it poses challenges like higher import costs, inflation, and increased foreign debt burden, it can also boost exports, attract foreign investment, and increase remittance value. Institutional interventions by the RBI, Government, SEBI, and export agencies aim to manage volatility, maintain investor confidence, and strengthen long-term economic fundamentals, ensuring that currency movements reflect real economic strength rather than short-term pressures.
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