Rupee Depreciating!

In the latter half of the year Rupee has weakened against the Dollar significantly. Black line in the graph is USD/INR which has appreciated from close to 40 Rs for a Dollar in April to about 50 Rs.

At the same time it is argued by some that USD has strengthened across all currencies. Implying that INR has not weakened much its just USD showing lot of strengthening. The red like shows USD index which is trade weighted index of USD against major currency pairs. This like shows performance of USD against other major currencies like Euro, Pound and Yen etc.

There is a close association in the upward movement of Dollar against Rupee and against all other major currencies (in other words the black and red lines)