The Rupee’s as you know has its historic low – 58.84. Exporters see this as an opportunity to make India the world export powerhouse by de-bottle-necking manufacturing infrastructure. Were as the weaker currency makes imports costlier, especially of foreign oil on which India heavily relies, and will stoke already high consumer inflation.
Let’s try to explore the reason behind the free fall:
1) Dollar Trading at 3 Year High : USD is trading at 3 year high at 84.3, US stock market are at life time high, Strength in USD indicating recovery in US economy. Housing market is recovering. Job situation is improving which makes market participants believe the US fed will be tapping the QE infinity. Continue reading “The Rupee Free fall and the reasons”