A weak currency need not necessarily reflect a weak economy, but it does indicate underlying issues that, if unaddressed, can do it harm. In that sense, the slide of the rupee ever since the start of the Russian invasion of Ukraine in February is worrisome. From 75.4 to a dollar on February 24, the day Russian troops advanced into Ukraine, the rupee slid to 79.14 to a dollar, its lowest ever, on July 5. Since the beginning of the calendar year, the rupee has fallen 6.2 percent against the dollar. Going by the way the rupee has been falling, it will certainly go up to 80 to a dollar, 'says. Jamal Mecklai, CEO of Mecklai Financial Services. But he can't predict exactly when, since that result is subject to market forces and the course of the war, inflation, and crude oil prices.
A key reason for the weak rupee has been the strengthening of the dollar against all major currencies. On June 15, the US Federal Reserve hiked interest rates by 75 basis points, the biggest increase since 1994, signaling a shift from a low-interest rate regime to higher rates in a bid to contain rising inflation. Higher interest rates become an attractive proposition for investors seeking higher returns on bonds. Such global investors sell their investments in local currencies elsewhere in exchange for dollar investments, strengthening the American currency.
Diese Geschichte stammt aus der July 18, 2022-Ausgabe von India Today.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der July 18, 2022-Ausgabe von India Today.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
ARTS AND THE MAN
In his centenary year, F.N. Souza: The Archetypal Artist tries to make sense of the recurring themes in the artist’s work
The Reluctant Art Critic
Advertising executive, art critic and possible catalyst of the modern Indian art movement, Rudolf von Leyden was an intriguing figure in pre-Independence Bombay
PORTRAIT OF AN ARTIST & POET
ANINDYO ROY’S THE VICEROY’S ARTIST IS A FICTIONALISED ACCOUNT OF EDWARD LEAR’S TRAVELS IN INDIA
Lady of the Light
This artist has transformed the humble bulb into a thing of beauty
S'more to Think Of
Called Marshmallow, this penthouse in Gurgaon with soft curves and plush aesthetics stays true to its name
A Marvelous Melange
From stylish living quarters to multipurpose adaptive space, this home in Mumbai turns every nook into a showstopper
TECH MEETS TEXTURE
Smart fabrics and intelligent textiles are changing the way we view home furnishings
Refresh and Revive
That old table, those cabinets or even the console can be given a new lease of life, one that is tailor-made to the latest trends
Standout Spaces
Want dramatic interiors but don’t know how? This home in Mumbai becomes a lesson in learning the nuances of adding magic inside.
Vernacular Wise
Forget international brands and design, the beauty and simplicity of local materials and ancient techniques is gaining momentum