Rupee depreciation

A fall in the value of the rupee against another currency. Moving from ₹80 to ₹84 to the dollar is a 5% depreciation.

The long-run tendency of the rupee to weaken against the dollar is largely an inflation differential: a currency in a higher-inflation economy loses value against one in a lower-inflation economy over time, which is the purchasing power parity idea in its loosest form.

For an investor the practical consequence is that dollar returns from Indian equities are lower than rupee returns over long periods, and any comparison of Indian and American index returns has to state which currency it is in.

Depreciation is not a crisis. Rapid depreciation is.