Rupee Vs. Dollar !!

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pnauhwar21

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As you know, Rupee has been rising steadily against dollar over last few months and impacting export & IT companies majorly. Lets discuss whats really good for Indian economy - a strong rupee over dollar or vice-versa. Probably some economists can throw light on how exactly this valuation-devaluation happens and how it impacts inflation in the country..

Rediff has really good article on this today with lot of interesting comments & analysis by readers:
http://www.rediff.com/money/2007/jul/25bspec.htm

I am,for sure getting impacted negatively as I am in IT industry, outside India and getting low exchange rates for my money transfers :) But still not sure whether strong rupee will really help our economy as we will lose the competitive edge due to this..
 
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pnauhwar21 said:
But still not sure whether strong rupee will really help our economy as we will lose the competitive edge due to this..
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Bhai prashant ... bera na ye utar chadhav hote rahe hein ... er nue kahe hein ek desh ki gdp badh gi ... phalani deficit kam hogi ... ye technical terms use kar kar logan ne ye arthshastri bhakae rahe hein ... aam aadmi ki halat pe to koe asar padta na deekhta ... kade aape to yo badhan lag jya hai ... kade ghatan ... Kalam ne aapne aakhiri bhasan mein kahi na ... ek hum kaheta rahan han ek this is increased and we economically getting stronger but this strenght is not much seen in the ordinary indian's life ...

Yes, indeed you question is good one for the knowledge point of view ... if somebody from economy specialist fielt then please put some light on these technical terms and their relation with the economy and when it is good and when not for our country.

GDP ... fiscal deficit ... etc etc ...
 

Well, not an economist, yet I m trying to put the underlying idea in simple words. Actually, developing nations generally witness an adverse ‘Balance of Payments’ position, which implies that the country as a whole has more to pay in terms of foreign currency than what is due for receiving from other nations. This is the case with India too and so we have more dues towards other nations than what we have to receive. So, if the value of Rupee strengthens (which means for e.g., if earlier $1 = Rs. 45, now $1=Rs.43 or anywhere less than 45) we will have to pay less in terms of the foreign currency as compared to what we would have paid if rupee had been weak. But, when it comes to receiving, we will be receiving lesser value, as for e.g. for $1 we will be receiving just Rs. 43, as against the earlier Rs. 45 for every $1. So, this is also the reason why importers benefit & exporters loose when Rupee strengthens, as importers have to pay less in rupee terms & exporters receive lesser amount in rupee terms!
 
Strengthing Rupee very good sign

Friends,

Strengthing Rupee is going to increase the purchasing power of Indian customer (common man). These are very good times. It is happening for first time in 60 years.
Good purchasing power = increased DEMAND in Indian market,
which implies greater Supply of goods,
which implies greater Production of goods,
which implies more Employment,
more Oppertunities,
more Prosperity,
more Peace.......
 
When demand rises, so does the prices...

Rupee gets strengthned doesn't means that poor people is going to earn more...only thing which he gets is more mehangai....

Maybe this thing is good for big players whose assets are in indian rupees...
 
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