Home Business Fiscal year 2018-19: Rupee witnessed significant devaluation against US dollar

Fiscal year 2018-19: Rupee witnessed significant devaluation against US dollar

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During the outgoing fiscal year, the value of the rupee continued to weaken against the US dollar, which in turn increased inflation and foreign debt by billions of rupees.

Besides, due to the increase in trade deficit, the fiscal year 2018-19 witnessed significant rupee depreciation.

At the end of the fiscal year 2017-18, the dollar was around Rs124 against the rupee as compared to Rs154, the highest in the fiscal year 2018-19.

So far during this fiscal year, the rupee has lost about 22.3pc of its value falling in the interbank market, and consequently the state’s external debts have soared by Rs2,000 billion.

To recover the value of the rupee, the government will need to formulate and implement effective measures, particularly for the reduction of imports and the increase in exports while announcing the budget for the upcoming financial year 2019-20.