CURRENCY DEVALUATION: A STORY FROM 1966 TO 2013.

This research paper is related to the devaluation of rupee in India. After 1947, India has faced two major financial crises and two consequent devaluations of the rupee. These crises were in 1966 and 1991 and now in 2013 the situation is also parallel and very destructive, as I plan to show in this paper, they had similar causes. The price of 16 Ananas is 1 rupee in 1947. The demand for decimalization existed for over a century. Sri Lanka decimalized its rupee in 1869. The Indian Coinage Act was amended in September 1955 for the adoption of a decimal system for coinage .it, however, was now divided into 100 'Paisa' instead of 16 Ananas or 64 Pice. In 1947 the value of rupee was one against the US dollar and in 1966 was 7.5, and in 1990 was 17.01 but it is 63.54 at November 2013. The Indian rupee touched a lifetime low of 68.85 against the US dollar on August 28, 2013. The rupee plunged by 3.7 percent on the day in its biggest single-day percentage fall in more than two decades. There is no denying that India is not the only emerging market experiencing a rapid decline in its currency's value. Since January 2013, the rupee has lost more than 20 percent of its value, the biggest loser among the Asian currencies. In this research we will learn about the reasons, causes and effects, and suggestions to evaluate the impact of the falling rupee on the Indian economy. [ABSTRACT FROM AUTHOR]