Indian Rupee Crisis…
When
Your ISD Code Becomes Your Exchange Rate: Rupee Hits ₹91
There's something almost poetic about the timing. India's rupee has slipped to
₹91 against the US dollar—yes, the same number as our international dialing
code, +91. It's the kind of coincidence that makes you pause.
But beyond the numerical quirk lies a serious economic development. For the
first time in history, the Indian rupee has crossed the 91-mark, touching 91.07
per dollar.
What's Behind the Fall?
The rupee's decline isn't happening in isolation. Foreign investors have been
pulling money out of Indian markets, spooked by uncertainties around
international trade policies and the strengthening US dollar. When dollars
leave the country, demand for rupees drops, and the currency weakens.
The US Federal Reserve's stance on interest rates hasn't helped either. Higher
rates in America make dollar assets more attractive, pulling investment away
from emerging markets like India. Add concerns about India's trade deficit and
rising crude oil prices, and you've got a perfect storm.
The Good and the Bad
A weaker rupee isn't entirely bad news. Indian exporters, particularly in IT
services, textiles, and pharmaceuticals, suddenly find themselves more
competitive in global markets. Software companies earning in foreign currency
are breathing easier.
But there's a catch. Imports become more expensive—everything from electronics
to crude oil. Since India imports significant oil, this means higher fuel
prices, which eventually show up in everyday goods. That dream vacation abroad
or new laptop? They just got pricier.
What's Next?
The Reserve Bank of India has been intervening to prevent excessive volatility,
but there's only so much they can do against broader global trends. Economists
are divided on whether this is temporary or signals a longer trend.
For now, when your country code becomes your exchange rate, it's definitely
time to pay attention to the numbers.
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