Rupee Appreciation

This paper is downloaded from internet. this paper is from Abhishek Arora, IBS Hyderabad. We had downloaded this from internet for academic purpose. RUPEE apprehension BOON OR BANE? BY: ABHISHEK ARORA IBS HYDERABAD Whenever currency of a solid ground moves up, its usually implicit that the thriftiness of region is doing well. The rupee against dollar has appreciated from Rs 46 in July 06 levels to 40.50 levels in May 07, an increase of more than 10 % in put up year. . The huge FIIs inflows in the country because of booming pecuniary market, RBI allowing ECB borrowings till 2.0 $billion and FDI increase in various sectors lead to everywhere supply in Indian forex market .Also the crisis in US mortgage sector has raised concern over on the job(p) of US economy, Mr. Ben Bernanke has raised concern of a slowdown the US which led to depreciating US dollar. On the contrary Rupee has depreciated against Euro and GBP, so it wont be prudent to say that the rise in rupee is purely based on growth in economy; it is also because of short term recession in US. Now we are a Trillion dollar economy surpassing Russia; we are worlds 12th largest economy. The forex reserves of country are around $ 200 billion (as on March 30th). allows have a closer look on how the importers, exporters and FIIs leave get affected?

IMPORTERS:-A BOON But all is non gloomy here as the Rupee at golf club year high is a sigh of relief for importers in the country. The oil marketing companies are already facing the volatility in crude prices resulting in under recoveries and so the appreciating rupee here comes to their rescue. According to an IOC official - For every 1 Re appreciation the input cost of crude dips by 2% The rising rupee will help the government to checker inflation, as the input cost of crude and electronic items will be lowered which will help in fleck the ongoing inflation and hence the interest rates. One of the biggest beneficiaries of rising rupee stands out the... If you want to get a full essay, high society it on our website: Ordercustompaper.com

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