Rise in rupee is not that India is going to be a economic giant. Its good for some company and bad for others.Government should allow to increase the Rupee or decrease its value depends on how its going to affect the Indian economic in future. Japan the 2nd largest economic has $1 = 122Yen. But still they are economic strong. Since each and every product they export their economic become string with fall in yen value. So Rupee rise is good or bad depends on our export and import ratio.
RE:Rupee Rise so....
by Ajay on Jul 25, 2007 09:16 PM Permalink
Fact is
1 Re ~ 3 Yen.
100 Sen = 1 Yen.
Before the war 1 USD ~ 2.5 Yen.
Right after war 1 USD = 360 Yen.
effect of Rising or falling Re is based on ones personal scenario. It is bad for IT / BPO / NRI if they are comming back to india. What needs to be analysed is if it is good for resident Indians?
Would rising Re lead to deflation. Also, is deflation such a bad thing?
RE:Rupee Rise so....
by Baapu on Jul 25, 2007 08:34 PM Permalink
Excellent Anil. I appreciate your last line "So Rupee rise is good or bad depends on our export and import ratio." Great.
