It is imperative that investors choose sectors with high growth potential.
Is Indian Rupee really falling?
It would be wrong to say that the Indian rupee is falling. Instead, we have to consider that the US dollar is appreciating. About a year ago, the US dollar trading index was close to 92.
However, today it is trading at 105, which is a growth of 14 per cent year-on-year. Simultaneously, the trading value of the rupee has declined from 73-74 to 79 as compared to the previous year, with a depreciation of 7 per cent year-on-year.
This indicates that the US dollar has gained about 14 per cent against other global currencies, but it is only up 7 per cent against the rupee.
As a result, the Indian rupee has outperformed other currencies in the broader international market.
Impact of Rupee Depreciation on Indian Economy
The Indian economy may face challenges of managing its double deficit with the current rupee depreciating. As a developing nation, we have few options to solve it.
Given the current energy scenario, the government should continue to purchase oil from Russia. This will help in keeping India’s fiscal deficit safe.
Additionally, currency depreciation is bound to affect nearly all businesses nationwide. However, some industries can also benefit from this.
A weakening of the currency will potentially be an upside for the IT sector, the pharmaceutical industry and export-oriented businesses.
future of indian rupee
While we have seen a decline in the trading value of the rupee, we are optimistic about its growth. From here the price of Rs.
However, possible cooperation between Sweden and Finland in the upcoming NATO summit The only caveat appears to be on June 30th.
If this alliance happens, it will have a significant impact on the global economy. This will further depreciate the rupee. In any other case, Indian Rupee should rise above the current level of 79.
(The author is Co-Founder, Ashika Global Family Office Services)
(Disclaimer: Recommendations, suggestions, views and opinions given by experts are their own. They do not represent whose views) economic times,