Congressi trolls who know nothing about Economy,are giving gyaan on #Dollar& #Rupee
Yes Rupee hit 77.40 to a Dollar,but,but..
Every major currency has hit lows against Dollar
China's Yuan hit 2yr low@ 6.7 to $
Euro hit 5yr low@ 1.04 to a $
#DollarIndex hit 20yr high at 104.07
Yes Rupee hit 77.40 to a Dollar,but,but..
Every major currency has hit lows against Dollar
China's Yuan hit 2yr low@ 6.7 to $
Euro hit 5yr low@ 1.04 to a $
#DollarIndex hit 20yr high at 104.07
Some Business News anchors are saying Rupee has fallen against Dollar because our monthly #TradeDeficit is hitting $20bn&our Current Account Deficit(CAD),will be 3%
Well,$20bn a month Trade Deficit is no big deal for us,given that our Goods+Services Exports are a massive $670bn
Well,$20bn a month Trade Deficit is no big deal for us,given that our Goods+Services Exports are a massive $670bn
2.5-3% CAD for an economy growing at average of 7.5-9.5% is not a big deal either
In fact,in last 8yrs,average CAD under @narendramodi govt has been sub 2%,so we have enough leeway on that count
Why then are major Currencies falling against Dollar?
Well,reason is,Fed Rate Hike
In fact,in last 8yrs,average CAD under @narendramodi govt has been sub 2%,so we have enough leeway on that count
Why then are major Currencies falling against Dollar?
Well,reason is,Fed Rate Hike
US Fed raised rates by 25bps in March 2022 and by a big 50bps last week
From Zero rates in Feb 2022,US Interest rate today is between 0.75 to 1%
US Fed plans to raise rates to 2% by end of 2022&2.6% by end of 2023,to control #inflation
Fed rate hikes have led to #Dollar surge
From Zero rates in Feb 2022,US Interest rate today is between 0.75 to 1%
US Fed plans to raise rates to 2% by end of 2022&2.6% by end of 2023,to control #inflation
Fed rate hikes have led to #Dollar surge
When US Fed raises rates,there is surge for Dollars
Fed rate hikes lead to #RiskAversion,which in turn leads to Safe Haven demand for US T-Bills&Dollar,across the globe
Current fall in #Rupee&in Pound, Euro,Yuan&Yen,therefore,is because of a Global #RiskOff, buying in Dollars
Fed rate hikes lead to #RiskAversion,which in turn leads to Safe Haven demand for US T-Bills&Dollar,across the globe
Current fall in #Rupee&in Pound, Euro,Yuan&Yen,therefore,is because of a Global #RiskOff, buying in Dollars
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