Currency Valuation include both devaluation and revalutions of countrys

currency
Devaluation means reducing the value of countrys currency relative to
currencies of other countries.
Revaluation is devaluation in reverse, instead of decreasing in value relative to
the currencies of other countries ,the value of a countrys currency increases.

Devaluation of the Indian Rupee

The Indian Rupee has fallen in value against a basket of currencies since independence
in 1947. In recent years, the Indian Rupee has continued to depreciate in value.
Indian Rupee value against US Dollar

In 1990, you could buy $1 for 16 Indian Rupees. By 2013, the value of a Rupee had
fallen, so that you would need 65 Indian Rupees to buy $1
This shows there has been a substantial fall in the value of the Indian Rupee against the
US dollar.
when we have a supply more than the demand then the rupee will appreciate
(decreases) against dollar, value depriciates (increases) when supply is less and
demand is more.RBI plays a major role in this to stop the heavy
fluctuations....like if the value of rupee is appreciating very high (rs.40
hypothetical figure) then RBI will buy much Dolars to create shortage of dollar..
and vise versa..i.e supplies much dollars into market to when the rupee
is depreciating(increasing)".
RBI will interfere because a steady value of rupee is essential for the orderly
growth of the economy. RBI will be watching the position and interfere to
stabilize the currency value. In case depreciation continues, RBI will sell dollars

directly to oil marketing firms from the reserve and this will help to a certain
extent in arresting the fall of rupee.

What is an Economic Crisis?

economic crisis can be described as that period of dismal
economic performance. During this time, the value of
institutions, especially financial institutions, drops at
unprecedented speeds and everything seems to be
valueless. Production is low and often fails to meet the level
of demand.

WORLD ECONOMIC CRISIS

The financial crisis of 20072008, also known as the Global Financial Crisis and 2008
financial crisis, is considered by many economists to have been the worst financial crisis since
the Great Depression of the 1930s.[1] It threatened the total collapse of large financial institutions,
which was prevented by the bailout of banks by national governments, but stock markets still
dropped worldwide. In many areas, the housing market also suffered, resulting
in evictions, foreclosures and prolonged unemployment. The crisis played a significant role in the
failure of key businesses, declines in consumer wealth estimated in trillions of U.S. dollars, and a
downturn in economic activity leading to the 20082012 global recession and contributing to
the European sovereign-debt crisis The active phase of the crisis, which manifested as a liquidity
crisis, can be dated from August 9, 2007, when BNP Paribas terminated withdrawals from three
hedge funds citing "a complete evaporation of liquidity
The bursting of the U.S. (United States) housing bubble, which peaked in 2006 caused the
values of securities tied to U.S.real estate pricing to plummet, damaging financial institutions
globally. The financial crisis was triggered by a complex interplay of policies that encouraged
home ownership, providing easier access to loans for (lending) borrowers, overvaluation of
bundled subprime mortgages based on the theory that housing prices would continue to
escalate, questionable trading practices on behalf of both buyers and sellers, compensation
structures that prioritize short-term deal flow over long-term value creation, and a lack of
adequate capital holdings from banks and insurance companies to back the financial
commitments they were making. Questions regarding bank solvency, declines in credit
availability and damaged investor confidence had an impact on global stock markets, where
securities suffered large losses during 2008 and early 2009. Economies worldwide slowed during
this period, as credit tightened and international trade declined. Governments and central
banks responded with unprecedented fiscal stimulus, monetary policy expansion and institutional
bailouts. In the U.S., Congress passed the American Recovery and Reinvestment Act of 2009.

Many causes for the financial crisis have been suggested, with varying weight assigned by
experts. The U.S. Senate'sLevinCoburn Report concluded that the crisis was the result of "high
risk, complex financial products; undisclosed conflicts of interest; the failure of regulators, the
credit rating agencies, and the market itself to rein in the excesses of Wall Street.