As the elections are heading, the politicians are expected to bring back the money that they have stashed abroad. As they will be getting higher amount due to the weak rupee, many are favoring the depreciation.

Interestingly, this is not the first time rupee has depreciated in the run-up to elections. In the year, 1996, the rupee depreciated to 10 percent within the period of 12 months. Even during the 2009 elections it fell by 18 percent respectively. However the elections that were suppose to take place by the end of 2013 is postponed to March-May 2014. Laveesh Bhandari, founder of Indicus Analytics, an economic research firm, offers an economist's justification for this phenomenon: "Typically, governments overspend as elections approach. This causes the rupee to depreciate, which then forces the government to intervene and try to prop up the currency."

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