The value of
rupee comes down
The value of
dollar has risen with the victory of Donald Trump in US presidential elections.
The value of rupee has come down as compared with the dollar. The rupee has
gone past 68 to a dollar. The dollar has considerably risen against the euro
too. This can raise US GDP growth to a great extent provided Trump and his team
keep their promises of tax cuts, deregulation and infrastructure spending.
The rupee has
slumped 2.3 per cent from its 66.62 a dollar close on November 8. The pressure
has become more owing to the Centre’s decision to withdraw higher denomination
currencies. Demonetisation move might not only affect the banking system but it
might make domestic interest rates decline. The rupee might appear less
attractive to investors too. The shortage of cash in the wake of the currency
move may slow down sharply the GDP growth. That in turn could weaken overseas
investment.
The
policymakers and the monetary policy committee should hold discussion and take steps
to prevent any kind of economic loss. They should somehow make the market and
investors develop confidence in India’s economic position today.
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