MINISTER OF STATE IN THE MINISTRY OF FINANCE
(SHRI NAMO NARAIN MEENA)
(a) The monthly exchange rate (average of buying and selling by Foreign Exchange
Dealer Association of India (FEDAI)) of rupee per US dollar during 2010 and 2011
is given below:
Month Rs. per US$
2010
January, 2010 45.96
February, 2010 46.33
March 2010 45.50
April, 2010 44.50
May, 2010 45.79
June, 2010 46.54
July, 2010 46.84
August, 2010 46.57
September, 2010 46.06
October, 2010 44.46
November, 2010 45.02
December, 2010 45.16
2011
January, 2011 45.39
February, 2011 45.44
March ,2011 44.97
April, 2011 44.37
May, 2011 44.90
June, 2011 44.83
July, 2011 44.42
August, 2011 45.25
September, 2011 47.63
October, 2011 49.26
November, 2011 50.30
(upto November 22)
(b) The fluctuation in rupee exchange rate has been due to changing supply-
demand balance in the domestic foreign exchange market. The main reason for
depreciation of rupee against US dollar is uncertain global economic
environment, particularly unfolding of euro zone sovereign debt crisis.
(c)&(d) Though in the long run, the Rupee fall would benefit exporters
through higher export earnings and improved competitiveness vis-Ã -vis other
emerging economies, the decline in the value of Rupee would have detrimental
effect in the short run. The Rupee decline makes oil imports more expensive,
contributing to inflationary pressures. The Rupee cost of other imports would
also rise, thereby contributing to price rise.