Recently, there has been a surge in dollar price, with dollar reaching some all time record price of Rs52.Is it good/bad for Indian economy?
Does the rising/tumbling of Indian stock exchange, have anything to do with this?
Is there anything, we can do to help our economy?Are these things a sign of recession in India?
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When the rupees increase in value in relation to dollars the price of imports goes down, but exporters make less of a profit, and vise versa.
Rupee weakening to a certain extent, i.e. to encourage exporters is good for the country. It will also benefit IT firms and tourism industry to a great extent. But the way rupee is depreciating at present , i,e at Rs.50 per dollar is harmful for the economy. Our imports including oil are more than our exports. The import bill will be higher and will affect the bottom line of many companies. Further a weak currency will reflect poorly on the counrty in International markets. A weak rupee will discourage foreign investors also as the amount of dollars they would get at the time of repartiation will be lesser than what they have invested. Foreign travel for Indian residents will also be a costly affair now. In my opinion Rs.43 per dollar will be ideal level both for importers and exporters. RBI should take appropriate measures to bring the dollar to Rs.43.
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http://govt-naukri.blogspot.com/
Who actually decides the exchange rates?can anyone throw light on the entire procedure?and what does RBI have to do with this change in rates?can they actually control it?i.e in terms of increasing and decreasing the rates?
The U.S. dollar is the currency most used in international transactions.The most commonly used symbols for the rupee are Rs and Rp.Dollars to Rupees is also important because a high dollar at time may encourage foreign investors to put more dollars in Indian stock market as high currency rate may help them in getting more fund in Indian Rupees in India.Dollars to Rupees conversion touch the many aspect in Indian Society and Economy.
Dollars to Rupees
ofcourse it is bad for us as we are earning in rupees but if we have to spend it in dollars how will we survive.but its good for those who are staying abroad.they have to spend less in india