: In charts: As the rupee touches 80 against the dollar, what does this mean for India’s economy? #IndiaNEWS The Indian rupee touched a historical low, trading almost at Rs 80 against the US dollar

@newsMNC

Posted in: #IndiaNEWS

In charts: As the rupee touches 80 against the dollar, what does this mean for India’s economy? #IndiaNEWS
The Indian rupee touched a historical low, trading almost at Rs 80 against the US dollar on Wednesday. A knee-jerk, macro-analytical response studying India’s currency performance would mistakenly see this trend in isolation, while projecting a weakening of macro-economic fundamentals to be leading towards a depreciation. Looking closely at the numbers it does seem to be the case but India’s macro-economic woes are being accentuated by external factors. For example, a tightening of the US Federal Reserve’s short-term interest rates – due to high inflationary expectations – has occurred at a time when the dollar is strengthening in its relative value, influencing weaker currencies, like the Indian rupee. A weakened rupee means Indian goods should be cheaper to buy in the international market. This is more so in case of an economy that has strived for its manufacturing sector to be competitive, regionally or globally, as the Narendra Modi-led government has done so through economic policies over the past eight years.In figure 2, Indian exports can be seen to be trending upwards from 2020, but so are Indian imports, which means that one pays more rupees or international currency – from the dollar to the yuan to the euro – for everything that...Read more

Latest stock market news Twitter alternate of India

Flash it Bury this

0 Reactions   React

Replies (0)

Login to post a comment!