Friday, July 27, 2007

Rising rupee - Good or Bad?

Came across an interesting article today that talks about the rising Indian Rupee.Once traded at 47 or 48, the rupee now hovers at 40 to the dollar. Is the rising rupee good or bad for India? While this increase creates problems for some companies that earn most of their revenues in dollars such as Wipro, Infosys and TCS -- it also creates opportunities for Indian firms by making it less expensive for them to acquire overseas assets.

Well, a strong rupee is good for the Indian consumer and as far as i am concerned, it's good news...:)

For more details check out - http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4212

1 comment:

sanjib said...

good or bad - depends on which lobby one belongs to.

in general, for a developing country its not good to have a strong currency. a pen which can be made in india for Rs48 used to be $1 when exported to US. Now that same pen has become $1.2. Indian exports will suffer. Some coutries artificially weaken their currencies to boost exports...prime example being china.

on a personal note, i wish dollar:rupee was back at the 1:45 - 1:48 range. could have visited 13th floor a few more times during the last trip :)