Exchange Rates

RBI deputy governor Poonam Gupta says the IMF's 'crawl-like' label is a sub-classification based on recent volatility data, and does not change India's managed-float exchange rate regime

For the same amount remitted, compare how much the recipient will get across different service providers

There is high negative correlation between the India 10-year and US 10-year bond yield spread and rupee-dollar exchange rate

One way to assess how much you paid is to compare the amount sent with the amount received

Traders now eye the US Federal Reserve meeting outcome for further cues on dollar movement, said dealers

The IMF had first moved to the "stabilised" classification for India from "floating" in December 2023

The Indian currency's rapid fall from 85 to 86 in just 16 days, and from 86 to 87 in another 15 days, highlights the volatility in the foreign-exchange market during those months

The RBI must come out with an official explanation, but until it does, we can only guess. But there are a few reasonable hypotheses

RBI showing greater tolerance for exchange rate under Governor Malhotra

Policymakers can get export growth for some time through subsidies, whether a production-linked incentive or a falsified exchange rate

REER represents the inflation-adjusted, trade-weighted average value of a currency against its trading partners

India now holds about $650 billion in reserves, enough to finance nearly a year of imports. The problem is that global financial markets have even more firepower

Rupee's 40-currency real effective exchange rate (REER) - a measure of its competitiveness - shows the currency was overvalued by 7.21 per cent at the end of October, close to highest in 6 years

Ever since the liberalisation in 1991, the RBI has pursued a flexible exchange rate policy

While some people view exchange rate fluctuation as detrimental to the economy, it is, in fact, a crucial element of economic flexibility

Our stated policy is to prevent excessive volatility of the rupee, said Reserve Bank of India governor Shaktikanta Das

The economy would be more stable if the exchange rate fluctuated more

The yen fell due to the prevailing blunt interest rate policy. But there is an alternative policy

The country's local dollar has weakened against the US dollar every day in 2024, sending the price of a single loaf of bread from Z$6,105 to Z$19,357 in a mere 11 weeks

'Central banks are looking forward to a victory lap as inflation tracks back to target with only a modest blow to growth'