depreciating rupee

The rupee has been depreciating and this is likely to change the economics for many. The depreciating ruppee is going to jack up the bill for the govt as far as imports of crude oil is concerned and add to it the rising crude prices, the govt is most likely to now take steps to attract foreign investments. The purpose is simple try to control the deprecaiting ruppee. This could be good news for companies who plan to raise foreign loans as some relaxation is expected on this front. FII's too can hope for some change in rules which could ease investments in the capital markets. This depreciated ruppee could also be good news for the companies and banks who had made provisions for the losses on forex derivatives. It could well be a windfall gain in their balance sheets in the current quarter.