The sharp fall in rupee vis-a-vis dollar over the past couple of months will have more negative impacts and minimal gain on export front, as per experts. Import-dependent sectors are expected to face cost pressures, which would ultimately impact the consumers. Rupee depreciation could force the RBI to hold interest rates in its February Monetary Policy meet.
Usually, depreciation of local currency makes exports more competitive, but experts say this may not be the true scenario in the present situation.
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