Indian Finance Minister Nirmala Sitharaman said that “Indian rupee not getting weaker, dollar is getting stronger” faced a lot of Criticism in India.
In current time Indian Rupee value against dollar is hitting new low one after another, according to current exchange rates you will get 85.40INR/1USD, but actually this concept of Indian rupee getting weak against dollar is only “HALF TRUTH”.
US enjoy a very unique and dominant position on global level, which it uses aggressively to make Dollar stronger, but when we compare Rupee with other top international currencies INR seems stronger, more stable and strengthening. Let’s understand it with the help of few facts which are as follow: –
BRAZILIAN REL 2014 – 27INR/1RBL 2024 – 13INR/1RBL, 51%decrease.
JAPANESE YEN 2014 – 0.62INR/1YEN 2024 – O.54/1YEN, 13% decrease.
AUSTRALIAN D. 2014 – 58INR/1AUD 2024 – 53INR/1AUD, 9% decrease.
CANADIAN D. 2014 – 57INR/1CAD 2024 – 59INR/1CAD, just 3% increase.
BRITISH POUND 2014 – 103INR/1GBP 2024 – 107GBP/1GBP, just 4% increase.
EUROPEAN EUR 2014 – 85INR/1EURO 2024 89INR/1EURO, just 4.7% increase.
On one hand, India’s growing economy, increasing foreign investment, and rising exports could strengthen the INR. On the other hand, factors like inflation, trade deficits, and global economic uncertainty could weaken the currency.
INR may depreciate against the US dollar in the short term due to India’s large trade deficit and the strong dollar ¹. However, India’s robust economic growth and increasing foreign reserves could help stabilize the INR in the long term.
The Indian Rupee (INR) is poised to become a global currency in the future. India’s growing economic influence, driven by its large and young population, rapid urbanization, and technological advancements, will contribute to the INR’s increased acceptance worldwide. As India’s trade and investment relationships expand, the INR will become a reserve currency, held by central banks globally. This will enhance India’s economic clout and stability, cementing the INR’s position as a major world currency
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