Dollar value is increasing against Indian Rupee
In the last few days, I noticed a big crash in the crypto market. I was expecting a great pump this year in the crypto market but instead, there are some sudden crashes and the price is unpredictable. Mostly Bitcoin is looking good but we need a pump in altcoins. There can be several reasons why the Dollar value is increasing against the Indian Rupee mostly because of the difference in interest value. If there is a high demand for USD against Rupee, then a lot of money will go outside and the value of Rupee will start going down as the demand is low.
I used to wonder if our small market in India could make a difference in this, but these games are all mostly for the big players. If the US has an attractive economy, then people will want to invest in the US economy instead of their own, and money will start flowing over there. People from other countries will start investing in US stocks or bonds.
Contributing factors in India
I think corruption can be one of the biggest reasons for this because many politicians and other people who have a lot of money usually keep their businesses outside India and sometimes invest a lot of money in US dollars instead of Rupee. This can silently create a huge demand for US dollars dropping the value of the Indian Rupee. But we cannot know for sure because the corrupted individuals not just keep their money as USD but they might use other country coins too. It is hard to predict.
Other contributing factors such as inflation, lack of growth, political situation, etc can be responsible for the price fluctuation. We can hardly do something about this. If there is a high inflation problem, people might move their assets to US Dollars.
Import export problem
Either it is a physical export or a service export and import, the reason for the value being this low can be because we are importing more compared to what we are exporting. To pay for the imports we are doing, we might have to purchase foreign currencies. This transaction will be in USD and most likely we will have to buy a lot of USD to settle the deals and this can increase the value of USD as opposed to Indian Rupee.
The needs in India have changed a lot and that's one of the primary reasons why we are importing a lot of goods from other countries. Thankfully at least we can make our food. When we import a lot of things from outside, there can be situations where we might have to buy USD to settle them.
Ultimately it can be a good thing for people who are living in the US and making money in the US. If they would like to liquidate some money, they will get a good value in Rupee. But the value might keep increasing and can become equivalent to pounds in the UK maybe or even some bigger coins from other countries.
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The main reason for the collapsing economies in many countries especially India is largely corruption. The leaders only care about themselves and not the people who elected them. That's why they do things that destroy the economy. It's even worse here in my country.
The crash was so unpredictable but I believe with time it will rise
I think our market is still young and these are kind of setbacks. When we look at geo politics the whole world is unstable but it's slowly settling. Same with the USD and INR it will settle at a level what level, no one knows but once it's done. Things will look better.
As for corruption the govt was supposed to build system that brings transparency but instead we got govt hiring corrupts because they bring votes. 🤦♂️
Kya hi umeed kare
Trump is doing an aggressive politic agenda, might be for that ... let's see if ukraine war ends how things turn
I think it might be a good sign for the dollar currency but a bad news for the ruppe currency
After Donald Trump won, the dollar rose and other currencies fell. Weak economies and corruption weaken currencies, and there is no one to fight corruption. Whoever becomes a leader commits corruption.
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This boosted the dollar currency and other currencies got affected negatively
It's interesting to see how global trade dynamics impact local economies. As India adapts to changing needs, it's essential to find a balance between imports and self-sufficiency, especially in food production.
In Asian countries, we see more corruption and therefore we see that those countries cannot develop and lag far behind the rest of the world.