Rupee falling or Dollar strengthening? (1)

If someone has basic knowledge of economics, will know the answer to this question but in India, the standard of journalist and leaders is so low that they don't even know such basics. The following thread will answer - dollar flying or rupee falling.

There are around 200 countries in the world and each have their respective currencyand all currencies maintain exchange rate with the currency of other countries.

Exchange rate of currency depends upon supply and demand of that currency. 

Now the question - dollar is strengthening or rupee is weakening?

* Check USD INR performance of last 1 year.

   Oct 2021 : 1 USD = Rs.75

   Oct 2022 : 1 USD = Rs.82

It's due to good performance of USD or due to bad performance of INR?

To check this, we have to find :-

* How rupee is performing against the other major currencies of the world?

* How other currencies are performing against USD?

If rupee is falling against other currencies also then we can say rupee is falling.

If other currencies are also falling against USD then we can say dollar is strengthening.

British Pound, Euro and Japanese Yen are the major currencies of the world.

Let's check rupee vs pound

Oct 2021  :  1 GBP = Rs.104

Oct 2022  :  1 GBP = Rs.92

So, in the last one year rupee strengthened against GBP.  

Let's check rupee vs euro

Oct 2021   :  1 Euro = Rs.88

Oct 2022   :  1 Euro = Rs.82

S, rupee strengthened against Euro also.

Let's check rupee vs yen

Oct 2021  :  1 Yen = Re.0.65

Oct 2022  :  1 Yen = Re.0.55

So, rupee strengthened against Yen also.

In last 1 year, rupee has weakened against dollar but strengthened against all major currencies. It gives the indication that rupee is not falling.

Let's check the performance of these currencies against dollar.

For that we will check dollar index. Dollar Index measures relative performance of dollar against 6 major currencies of the world including GBP, Euro and Yen.

Oct 2021   :  USD value against 6 major currency = 93

Oct 2022   :  USD value against 6 major currency = 112

So, it proves that rupee is not falling, it's actually dollar that's strengthening. Rupee is fighting bravely against dollar and performing very well compared to the other currencies and India really deserves appreciation of it. 

.......to be contd.

Tailpiece.

Got up at 6, the chores and was ready by a quarter past 9. A quick breakfast of dosas, chutney and sambar. Went off at 10 to the bank to give instructions, took the first bus for Thrissur from the other side of the flyover-in-the-making and reached Puzhakkal by a quarter to 11 and my heart sank when I saw the road to the service station cut into two.

The paper work was done, had a cup of tea and Shibu drove me back on to the main road from where I'd taken off for Guruvayur. Went to Harisree for sundries, then to our regular fruit stall for the fruit basket, topped up our Chevy with fuel and checked tyre pressure.

A quiet evening.