This statement is defended : Depreciation of rupee means fall in the value of Indian rupee in terms of foreign currency in the foreign exchange market. Any depreciation of home currency results in increase in exports of the country and this has lead to distress for Indian importers.
In currency depreciation, there is a fall in the value of domestic currency in terms of foreign currency. Effects of depreciation of currency are :
(i) Encourages exports from a country.
(ii) Discourages imports from rest of the world.