Apropos of the report “Indian rupee may weather US dollar rise” (December 12), look...
Dollar gains strength
Apropos of the report “Indian rupee may weather US dollar rise” (December 12), look at the mighty that had steadily been declining for three decades—losing almost half its value against other major currencies since 1985, down 33% in the past 11 years—now soaring by more than 7% in just the past four months against a basket of more than a dozen global currencies. When the US economy was battered post the 2008 crisis and crude was touching $145, it had no serious problems posed by adverse exchange parity that other nations were struggling with, being the sole printer of world currency. With little monetary kinks to sort out as owner of the dollar, the fiscal mountain of deficit could be weathered by the US with a steady but modest growth .That is the privilege the US has always enjoyed. No doubt , the conditions are currently working in the dollar’s favour. That said, an upward dollar helps other nations in pricing advantages, leading to a welcome global economic rebalancing.
R Narayanan, Ghaziabad