Indian Rupee, has depreciated to 64.79 against US dollar; hitting a 2-year low. China’s devaluation of the Yuan is the major factor of depreciation in the Rupee.
The Rupee on Wednesday has opened 60 paise lower than Tuesday’s close of 64.55, which was last seen in Sep’13. While, Chinese currency, Yuan is traded at 6.44 per USD.
The devaluation of the Chinese currency is likely to hamper Indian export to China, especially iron ore. However, INR has remained stable against USD even as currencies of other emerging markets have weakened. This may impact imports.
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