Washington: The real effective depreciation of the Indian rupee this year as compared to December 2017 is between six and seven per cent, according to the IMF which warned that it would jack up the prices of imported goods such as oil and petroleum products, potentially putting an upward pressure on inflation.
The rupee on Monday fell to a new low of 72.92 to the US dollar, according to Bloomberg.
Since the beginning of the year, the Indian rupee “has lost about 11 per cent of its value in nominal terms vis a vis the US dollar,” the International Monetary Fund (IMF) spokesperson Gerry Rice said.
He was responding to a question on the fall of the Indian currency in the last few months.
He, however, said the currencies of many of India’s trading partners, including those in the emerging markets, too have depreciated against the dollar.
“As a result, so far this year the real effective depreciation of the Indian rupee compared to December 2017, by our estimates, is between six and seven per cent,” Rice said.
