- Tag results for rupee fall
Currency in circulation increased from Rs 9 trillion in January 2017 to Rs 19.5 trillion as of September 14 this year.
The Indian government estimates that the measures like allowing Indian banks to become market-makers, will increase capital inflows by USD 8-10 billion, or 0.3-0.4 per cent of GDP in the next year.
The rupee, Asia's worst performing currency this year, has depreciated about 12 per cent year-to-date against the U.S. dollar, closing at 72.39 on Wednesday, after a record low of 72.99 on Tuesday.
The rupee strengthened 0.7 per cent to 72.5350 per dollar on Wednesday, after hitting an all-time low of 72.99 in the previous session.
The proposal, which is part of a broader government plan to cut "non-necessary" imports to stop an outflow of dollars that has sent the rupee to record lows, will be discussed by the trade ministry.
The government's latest measures to support the rupee announced last week were particularly underwhelming for market participants who have since increased bearish positioning on the currency.
As per the report, during the June 2008 to May 2009 period, when rupee depreciated by 13 per cent, the RBI sold dollars worth $43 billion, though the forex reserves at that time stood at $312 billion.
Since India is a relatively closed economy, the contribution of the net exports to growth in April to June quarter was again stronger than expected.
The dollar rose against a basket of major currencies overseas, with investors cautiously awaiting news on the implementation of US tariffs on an additional USD 200 billion of Chinese imports.
The BSE 30-share barometer dropped 366.52 points, or 0.96 per cent, to 37,724.12 driven by losses in index majors Axis Bank, SBI, Asian Paint, Tata Motors, HDFC and HDFC Bank.
BJP President Amit Shah also drew parallels to different currencies claiming that the fall of rupee is much lesser if compared to currencies of many other countries.
In an interview, Rajan said it was important for the RBI to continue to give signal that it would keep inflation under check.
Brokers said rising global crude oil prices, which went past the USD 78 per barrel mark and plunge in the rupee's value and sustained foreign fund outflows weighed on market sentiment.
The impact of any financial crisis is far and wide and lasts long enough for pundits to write books.
Last month, several companies had announced to hike the prices of TV panels of 32-inch and above to offset the adverse impact of the falling rupee.