How does the rise in the rupee value against the U.S. dollar impact the Indian economy
Rupee rises 8 paise to 83.37 against U.S. dollar in early trade
- A rise in the rupee value against the U.S. dollar makes imports cheaper for Indian businesses and consumers, as they need fewer rupees to purchase goods and services denominated in dollars.
- This can lead to lower input costs for industries that rely on imported raw materials and components, potentially boosting their profitability.
- However, a stronger rupee can negatively impact exporters, as their goods become relatively more expensive for foreign buyers, potentially reducing demand for Indian products in international markets.
- A higher rupee value can also affect remittances from overseas Indians, as they receive fewer rupees for the foreign currency they send back home.
Answered
10 months ago