1️⃣ Devaluation vs Depreciation (Core Concept) 🔴 Devaluation Happens only in a fixed exchange rate system Government or central bank intentionally reduces the currency value India devalued the rupee three times : 1949 – Weak British economy 1966 – War + drought + forex shortage 1991 – Balance of Payments crisis 📌 These decisions were policy actions , not market outcomes. 🔵 Depreciation Happens in a floating exchange rate system Value falls due to demand and supply India has followed a floating system since 1991 Today’s fall below ₹90/$ is market-driven depreciation , not RBI action 👉 Key takeaway: Today’s rupee fall is depreciation, not devaluation. 2️⃣ Why Is the Rupee Depreciating? (Global Forces) 🌍 Strong US Dollar (DXY Effect) The US Dollar Index (DXY) measures dollar strength against major currencies Euro and Yen are weakening → Dollar looks stronger Strong dollar = weaker emerging market currencies ⚔️ Gl...