Indian Rupee vs US Dollar Exchange Rates

Our Indian Rupee Forex hub continues to grow visits, so much so that we have build a website devoted to our research, including news feeds. After enjoying our Rupee hub, please visit our research for additional information on the Indian Rupee vs. US Dollar The future is clearly in the Indian Rupee. The rupee had an incredible run vs the US dollar from 1999 - 2007. Now we will see the US Dollar continue to gain strength against the Indian Rupee over the next 3-4 years, but with out a doubt the Indian Rupee will be in the end become one of the truly dominant currencies over the next 15-20 years. It will far surpass the Chinese Yuan, although this may come as a suprise, the Indian Rupee and the economy of India will far surpass that of China. An Additional resource for Indian Rupee exchange rate information. All New Rupee Forex news site Gold vs Indian Rupee vs US Dollar website now available with daily updates. As China over-controls the value of the Chinese Yuan, the Indian policy makers are slowly introducing the Indian Rupee to an openly traded currency. The India Rupee is already (almost) freely traded in Dubai. Plans for the Rupee to truly trade freely in New York and London are in the works. Combine the Indian Rupee advantages, than consider that the Indian economy is actually well better positioned than that of the chinese and you will see the advantages of investing in both the SENSEX and the Rupee. China continues to do the manufacturing for the world, while an educated work force in India are taking the route of higher paid technology jobs. Most high-tech outsourcing continues to move to India and the Rupee. India's annual industrial output rose more than expected in July, driven by capital goods production, which analysts said signalled continuing investment and underlying economic strength in the face of higher interest rates. Friday's data showed industrial production rose 7.1 percent in July from a year earlier, beating a forecast of 6.5 percent in a Reuters poll and faster than 5.4 percent in June. Industrial output is geared mostly to the domestic market, accounting for about a fifth of GDP, and economists were divided on whether it was strong enough to prompt another tightening by the Reserve Bank of India (RBI) at a rate review in October. "Given the recent trend as far as manufacturing prices inflation is concerned there is still scope for RBI to go with that one last hike in October," said Rajeev Malik, head of Indian and ASEAN economics at Macquarie Capital Securities. The yield on the 10-year benchmark bond fell 2 basis points to 8.25 percent after the data, with the market looking past the data to an auction later in day, while the rupee inched up to 45.7150/7250 per dollar and the main stock index trimmed losses.

7 percent in fiscal 2008/09.The central bank raised interest rates three times in June and July as inflation moved into double digits. Some.6 percent in early August to just above 12 percent by the end of that month. currency traders will bet that it will move to its equilibrium. They constantly fluctuate. "The headwinds to growth have risen and we expect average IIP growth of 6. There will be no total equilibrium in currency exchange rates. People in different countries consume different baskets of goods or services.0 percent. Just to compare the quantity of money that moves across the world. such as GM). We do not expect any more repo rate hikes by the Reserve Bank of India. taking its main lending rate. What actually influences the exchange rates and causing disparity in PPP? When the Forex (Foreign Exchange) market sees that there is an over valued or undervalued floating currency pair. or even move further against equilibrium based on some economic activities that they are aware of. Visit our additional Indian Rupee / Gold / US Dollar research site It can be explained by the Purchasing Power Parity (PPP). imagine the yearly budget of the United States. Over time they will find an equilibrium though (!?). Annual inflation has moderated from a peak of 12. a 2.9 Trillion Dollars. than we have an overvalued or undervalued currency. almost every second as global trade moves money between international banks. Because most currencies float freely. If a PPP in one country indicates that the basket of goods or services is less or more costly than in another country. Big banks and speculators (even some multi-nationals. The Indian economy will be more to content with for the US Dollar than the Chinese Yuan. It is necessary to make adjustments for differences in the quality of goods and services as well. to a seven-year high of 9. Hence we have a fluctuation (supply and demand of the currency in addition to inflation of various countries/currencies). Jappanies tourist going to the US exchange their currency to USD (weakens the yen). Importers need to convert US dollars to Japanese Yen (JPY) to buy cars (buying JPY will strengthen the Yen). such as US is importing Japanese cars. who observe the exchange rates . economist at Lehman Brothers. and some economists say the central bank may not hike rates again. The Indian Rupee will continue it's long term rise. the repo rate. About this amount of money is moved every single DAY in the Forex market. economic pressures may result in temporary variations in PPP of different currencies. Estimation of PPP is complicated." said Sonal Varma. The PPP index takes in consideration comparable baskets of goods and services in various countries to compare their purchasing power. money is moved because of international trade.

I hope this long-winded explanation clarifies.and predict moves one way or the other will open positions in certain currency pairs and close them when they can realize a profit (or loss to be minimized). why goods or services cost more or less in different countries. They effectively influence the market's equilibrium (this is of course an over-simplification). . and why exchange rates are not in sync with the PPP of various countries causing this to occur.

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