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Mr Pugalia told The Times of India: Those making such claims, particularly foreign investors in India, of course stand to lose if the economy rebalances. If India were exporting more than it imports, such a rebalance might be a bad thing. However, the rupee has clawed back some ground against the US dollar in recent as weeks as fears of a glut in the supply of oil have sent Crude and Brent prices tumbling. For one, to the extent that the vast majority of goods are traded and the vast majority of services are not, a rising real exchange rate creates a bias against producing goods and in favor of producing services.
Conversely, attempts to raise the value of the rupee could dig that hole deeper and cause other problems as well: Rupef central bank has exvhange an excellent job to date, and it should stay its course. The Congress party has written off farm loans, a poll promise, in the central states of Madhya Pradesh and Chhattisgarh. If the rupee-dollar exchange rate were unchanged, this would mean that in dollar terms, Indian goods would become 2 percent more expensive than U. But tariffs are not the answer to such problems, since they stay in place even after the real exchange rate starts to correct.
Today's Best US Dollars to Indian Rupees (USD to INR) Exchange Rate
My short answer is: As the competitiveness of domestic products erodes, their producers naturally begin to clamor for protection. Mr Ghandi has pressed the Modi institute to waive farm loans to help growers feeling the squeeze from lower food prices. Further, the weakening of the rupee will actually be a good thing for India. The real exchange rate corrects for the difference in inflation between countries. August 30,3: Between fiscal years andthe rupee had appreciated by