Watch CutTheClutter: Flattening INR-USD rate, and debate on pros and cons of a ‘strong’ rupee

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Key Points

The rupees value fluctuates depending on various factors, including inflation rates, foreign portfolio investment (FPI) flows, and RBI interventions...

You could find dealers in the back alleys of Janpath, Connaught Place, Paharganj, or Kashmiri Gate, exchanging rupees for dollars, pounds, or other convertible currencies, often at a street premium...

Differences often exist between the official bank rate and the real effective exchange rate, typically influenced by inflation rates in India compared to those in the US, as the rupee is pegged to the dollar..

Economists and critics argue that this approach undermines Indias export competitiveness and could hinder economic growth by keeping the rupee artificially strong, effectively subsidising imports..

As the Indian exchange rates flatten, in Episode 1544 of CutTheClutter, Editor-in-Chief Shekhar Gupta looks at some top economists pointing to the pitfalls of currency nationalism with data from 1991 to 2004...

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