The govt's appeal to spend fewer dollars is well-intentioned, but voluntary behavioural change is uncertain. A weaker rupee achieves the same outcome automatically and faster.
The rupee’s fall to record lows amid rising energy-import costs and capital outflows is raising expectations that RBI Governor Sanjay Malhotra may be forced to abandon his pause and hike rates.
The lesson we seem to have learnt is that we should not bother with exporting goods if our remittances and service exports can help us keep our current account deficit modest.
The other emerging market currencies experienced a more pronounced depreciation against the dollar than the rupee in 2024, resulting in a relative appreciation effect.
Both the government and the RBI are currently so focused on their respective targets that they are losing sight of the fact that some flexibility might actually be a good thing.
ThePrint analysed exchange rate & trade data from April 2012 to September 2022, which shows there’s little relation between the rupee movement and performance of exports.
The rupee dropped to a record low of 82.6825 on Monday, but has managed to recover slightly, thanks to likely intervention by the Reserve Bank of India, which offset trading volatility.
With US Fed hiking rates, RBI might be pushed to increase its own rates to slow simultaneous fall of rupee & India's forex reserves. But this could also hurt economic growth.
Political satire is indispensable to democracy, racial caricature isn’t. If Europe’s liberal press still cannot tell difference, then decolonisation never happened in their imagination.
With Washington issuing a third 30-day waiver for Russian crude cargoes at sea, India signals continuity in import strategy while ramping up purchases from Venezuela and other suppliers.
While India yet to set in motion theaterisation of armed forces, China's military reforms combined China’s Army, Navy, Air Force and Rocket Force aimed at regional dominance & tight political control.
Pakistan has ended up losing every war against India but that hasn’t prevented it from claiming victory. We will go over the evidence to anticipate what to expect next.
Mixed views on this. Since college, when we were taught that a “ weak “ currency is good for exports. Irrespective of which political party or formation is in power, a strong currency signifies that the economy is sound, well managed, harvesting growth opportunities., the government is fiscally prudent. For a long time, China’s success in exports was attributed to “ currency manipulation “. Not acknowledging that it rested on a very globally competitive manufacturing sector.
We need more of such sane articles reaching everyone than those filled with political slugfest. The states intervention creates unnecessary distortion…. like a lie that needs more lies to sustain itself.
Mixed views on this. Since college, when we were taught that a “ weak “ currency is good for exports. Irrespective of which political party or formation is in power, a strong currency signifies that the economy is sound, well managed, harvesting growth opportunities., the government is fiscally prudent. For a long time, China’s success in exports was attributed to “ currency manipulation “. Not acknowledging that it rested on a very globally competitive manufacturing sector.
We need more of such sane articles reaching everyone than those filled with political slugfest. The states intervention creates unnecessary distortion…. like a lie that needs more lies to sustain itself.