Exchange Rates

India is the third-largest economy in the world in real terms

PPP-based estimates show India as the world's third-largest economy, highlighting how currency distortions mask real purchasing power, domestic demand strength, and global economic influence

BS Opinion wrap: India must harness its untapped services trade potential

From services trade trends and POSH gaps in IT firms to rupee volatility, labour reforms, and Arctic geopolitics, here are the key insights from today's Business Standard Opinion page

Currency policy is costing India: Managing rupee harder in open economy

India is no longer the closed, simple economy of the 1970s. When the RBI attempts to fix the price of the rupee, it must contend with the incentives of millions of rational actors

Best of BS Opinion: Trump tariffs, euthanasia, rupee and farms

Today's Opinion page covers Trump's tariff strategy, the Supreme Court's passive euthanasia ruling, rupee depreciation amid West Asia tensions, farm diversification and a Syria war book review

Datanomics: India may not surpass Japan as 4th-largest economy in FY26

India's economy is growing faster than peers, but a weakening rupee may delay its move past Japan to become the world's fourth-largest in dollar terms

Statsguru: Rupee breaches ₹90 per dollar in December, down 4.9% in 2025

The Indian rupee slipped past ₹90 per dollar in December 2025, down 4.9% for the year, underperforming peers amid volatile capital flows and uneven forex support

Rupee slide, overseas inflation key when planning foreign education

Factoring in only domestic inflation could lead to a shortfall

How consistent is IMF's exchange rate regime classification, data adequacy?

When seen historically, India's exchange rate arrangement, both de-facto and de-jure, was floating from 1999 to 2022 (independent, managed, and floating)

Not reading too much into IMF's 'crawl' remark: RBI Dy Guv Poonam Gupta

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

Sending money abroad: Choose platform that discloses exchange rates, fees

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

Low interest rate in India is coming at the cost of rupee exchange rate

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

Buying forex: Compare exchange price offered by seller with interbank rate

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

Rupee strengthens for third consecutive day as dollar continues to weaken

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

IMF keeps India's 'stabilised' exchange rate classification through 2024

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

Weighted moves: RBI's shock therapy restores stability to the forex market

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

Why did RBI replace flexible exchange rate with de facto peg against dollar

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

Is foreign exchange rate stability desirable? Not really, data shows

RBI showing greater tolerance for exchange rate under Governor Malhotra

Stop-start in currency volatility: Markets deliver consistent daily shifts

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

Rupee's Real Effective Exchange Rate climbs to 108.14 in Nov: RBI report

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

Rupee defence strategy: Why RBI should embrace currency flexibility

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