Using your phone's internet browser
go to:  qna.rediff.com
Click and drag this link to
the Home icon in your browser.
Q.

When U.S. is facing a recession why a Dollar is getting stronger against a Rupee?

Asked by Advocate Vinay, 28 Apr '09 09:32 am
  Invite a friend  |  
  Save  |  
 Earn 10 points for answering
Answer this question  Earn 10 points for answering    
4000 characters remaining  
  
    
Keep me signed inNew User? Sign up

Answers (3)

1.

The main reason for Rupee Appreciation is on account of

1. Huge forex inflow mainly the USD. This inflow is in the form of FDI, ECB, Investment and Remittances.

2. Growing Exports. Resulting in huge inflow in USD thus making the domestic currency appreciate against the dollar.

3. Political Dilemma. Central bank with stringent task to achieve inflation at 4.0 to 4.5% is not in a position to help exporter by means of infusing rupee in the market
Answered by Musfer, 28 Apr '09 10:16 am

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
2.

US companies are withdrawing dollars from global markets. Hence there is lack of USD. Since demand is high & supply is less, USD is increased.
Answered by Yogesh Durve, 28 Apr '09 09:38 am

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received
3.

Because FIIs are pulling back dollars from the market
Answered by Praveen Verma, 28 Apr '09 09:36 am

 
  
Report abuse
Useful
 (0)
Not Useful
 (0)
Your vote on this answer has already been received

Ask a Question

Get answers from the community

600 characters remaining