There are fears that the rupee may fall below 80 to the dollar due to the ongoing Russia-Ukraine war if RBI does not intervene aggressively and the conflict drags on. How will the slide impact exports, imports and inflation, more particularly the spike in the prices of imported goods?
The four major bouts of rupee depreciation in over a decade--2013-14, 2015-16, 2018-19 and 2020-21--impacted these heads differently in each of these periods.
Exports rose by about 5 per cent in 2013-14 but imports dipped 8.3 per cent when the rupee shed over 11 per cent year-on-year.
The impact of