Finance, Forex and Investments

With the Indian economy growing so strongly, will US dollars become cheaper in India?

India is now the 2nd fastest growing economy, so will the US dollars become cheaper or more expensive in India. eg. Now it is 1 USD = 46 INR. will it become less rupees for 1 dollar or more rupees?

Public Comments

1. less rupees
2. I think this is quite a tough question to answer. Let's start with the living standards first. Then we can predict the ups and downs of the US dollars VS the INR. The major factors determine the currency ups and downs are: Supply and demand, Investor sentiment, and Technical data. http://en.wikipedia.org/wiki/Economic_growth http://search.yahoo.com/search?p=Will%20the%20better%20economic%20grow%20and%20cheaper%20living%20standards%20influence%20the%20US%20becomes%20chaper%20to%20live? I think it similar to the raised values of Japanese Yens and China Yuan in the past few years because of their economic growth have triggered the investor sentiment and supply and demand of these to Asian currencies, Singapore currency is doing okay, too. These countries are named the the Asian dragons. I definietly think so for the long run. http://search.yahoo.com/search?p=What%20factors%20determine%20the%20up%20and%20down%20values%20of%20a%20currency? Many scholars and economists are predicted the Indian Rupees is getting stronger against the US dollars. http://search.yahoo.com/search?p=Will%20the%20Indian%20Rupees%20getting%20a%20better%20exchange%20rate%20US%20the%20US%20dollars%20in%20the%20future?
3. The value of the dollar relative to the rupee will depend more on how fast the central banks of those two countries grow their money supplies relative to underlying economic growth. Right now both countries are inflating their currencies. If one stopped doing that and the other didn't, the relative currency values would shift. Keep in mind that the relative price of anything (including currency) is determined not only by the demand for it, but also the supply.