Can anyone pls squeeze some time amid their busy schedule to let me know that: For ex: Is rupee rise means 1$=40 Rs. OR 1$=45Rs. Would appreciate your valuable comment
RE:What is Rupee rise?
by karthik swamy on Jul 25, 2007 08:05 PM Permalink
Rupee rise means lesser amount for 1$. So if yesterday, if you had 1$, you could exchange the same with 45 Rs., but today you will only get 40 rs. This is a serious concern because, imagine if you were working in the US and you earned in dollars, so the amount of money you are making in terms of rupees value becomes less, if rupee strengthens. Also the immense growth which we see India has encountered in the last decade or so has come from software exports, outsourcing etc. Now, imagine, if for one particular service, you used to get 1$, which till yday made you 45 Rs. at home, but today you will only get 40 Rs. Same with all other services for which we depend on USD. This will effect the salaries that are paid to all the IT employees as the amount of "money actually made" would decrease, because the US client wont pay us more if the INR value has risen. hence, this will also result in India losing it's "Cost Advantage" over other countries. We would have to come up with a new advantage that we can give to our clients in the US.
Okay i think i have written a lot...sorry about that...hope you got your answer and a bit more info...:)
RE:What is Rupee rise?
by Baapu on Jul 25, 2007 08:17 PM Permalink
Karthik:
Appreciate your detailed response. But still its quite confusing that why do we say "Rupee Stronger against dollar" if we exchange it for 40 not 45. Since the value has come down & we are exchanging dollar for lesser amt, we must say "Rupee Weak against Dollar". This is my point of view. And if Re. rises or strong against USD..I understand Exporter like big daddies TCS, Wipro n all will have adverse affect. But how Importer will get benefit from it?
Would appreciate valuable comments from Experts. Thx
RE:What is Rupee rise?
by Raj on Jul 25, 2007 08:40 PM Permalink
Bapuji rupees is stronger because we are paying only 40 now but earlier we used to pay 45, so the difference of 5 rupees makes the RS stronger. Importer will be benefitted because earlier they had to pay 45 rs for any imports but now they have to pay only rs 40 for any imports so thats a profit of 5 rs for them.
RE:What is Rupee rise?
by Ashwin on Jul 25, 2007 08:46 PM Permalink
Baapuji, rupee is stronger when you can get more dollars for your rupee. So, when $1 = Rs. 40, rupee is stronget as compared to $1 = Rs. 45. Hope it helps.
RE:What is Rupee rise?
by Baapu on Jul 25, 2007 08:53 PM Permalink
My heartfelt thx to everyone for their quality time spend to post valuable comments.
When you can buy more dollars with less Rupees it means Rupee is rising . for eg today you can buy one dollar for 40Rs so Rupee is rising.. get it?
Importers benefit because if you are importing a car from US which costs lets say $1 then now you are paying only Rs 40 for the car earlier you were paying Rs 45 . I hope this is simple enough
RE:What is Rupee rise?
by Baapu on Jul 25, 2007 08:43 PM Permalink
Thx Mr Bhagwat for your prompt response. 1. Is it Good for Indian economic Growth? 2. How do we evaluate these figures?
RE:What is Rupee rise?
by Amiruddin K on Jul 25, 2007 07:54 PM Permalink
dear Baapu Rs Rise means 1$=40 which is not good for our export.Bcz if we will sell we will get forgein Exchange (eg. US$) so Rs must keep low as China is doing with it's currency(They are not revalueing bcz they know it will effect to they big export.)
RE:What is Rupee rise?
by rajesh jha on Jul 25, 2007 08:12 PM Permalink
Dear friends China's currency is apreciated by appriciated by around 8.5% in a year. Now it is 7.54 per dollar compared to 8.05 a dollar a year back. But I agree this affects exporters as well as dollar earning persons like us whose salary has gone down by 15% without any effort.
