Finance Minister Nirmala Sitharaman’s statement saying, “Rupee is not weakening, Dollar is strengthening” is being discussed so much in media especially by the left and the pseudo seculars.
Let’s dive into some facts:
How has Major World currencies performed against Dollar in last one year (From October 2021 to October 2022)?
- 1 USD = 6.44 Chinese Yuan to 7.19 Chinese Yuvan (Growth of 11.6%)
- 1 USD = 114.38 Japanese Yen to 148.78 Japanese Yuan (Growth of 30%)
- 1 USD = 0.73 Pound to 0.9 Pound (Growth of 23.2%)
- 1 USD = 0.86 Euros to 1.03 Euros (Growth of 19.7%)
- 1 USD = 1.35 Australian Dollar to 1.61 Australian Dollar (Growth of 19.2%)
- 1 USD = 1182 South Korean Won to 1441 South Korean Won (Growth of 21%)
- 1 USD = 1.24 Canadian Dollar to 1.39 Canadian Dollar (Growth of 12%)
- 1 USD = 70.99 Russian Ruble to 62.65 Russian Ruble (Decrease in 11.7%)
- 1 USD = Rs.75.04 INR to Rs.82.42 (Growth of 9.83%)
We can observe Dollar has performed better against almost every Major currency except Russian Ruble. It can be said that Dollar is strengthening against almost every major global currency and hence Nirmala Sitharaman saying that Dollar is getting strengthened is a fact!
Russian Ruble had performed better than Dollar because Russia had linked their currency to Gold to counter the sanctions made by west against Russia.
When most of the major currencies had lost their value against dollar more than 10% or more than 20%, Rupee had lost its value only around 9%, which means that Rupee is performing better when compared to almost every major global currency.
I have analysed whether Indian Rupee got weakened in last one year. To understand this, we should find how Rupee had fared against major global currencies including dollar.
We saw previously that Rupee lost its value around 9% against dollar last year.
Let’s come to other currencies vs Indian Rupee in past one year:
- 1 Chinese Yuan = Rs.11.66 to Rs.11.46
(Rupee gained more value against Chinese currency by 1.7%)
- 1 Japanese Yen = Rs.0.66 to Rs.0.55
(Rupee gained more value against Japanese Yen by 16%)
- 1 Pound = Rs.103.28 to Rs.92.07 (Rupee gained against Pound by 10%)
- 1 Euro = Rs.87.04 to Rs.80.12 (Rupee gained against Euro by 7.9%)
- 1 Australian dollar = Rs.55.67 to Rs.51.07 (Rupee gained more value against Australian dollar by 8.2%)
- 1 Russian Ruble = Rs. 1.06 to Rs.1.32 (Rupee lost value against Russian Ruble by 24%)
- 1 South Korean = Rs.0.063 to Rs.0.057 (Rupee gained more value by 9.5%)
Almost against all major currencies except US Dollar and Russian Ruble, Rupee had gained more strength even against currencies of bigger economies like China, Japan, European Union.
We can safely say that Rupee is performing much better than almost every global currency except very few. When Rupee is performing better than majority of global currency, it’s very unfair to say that Rupee is weakening.
Both dollar and rupee are getting stronger in global currency market and the only difference is that dollar is gaining value faster when compared to rupee. Hence, just because Dollar is gaining more value compared to rupee, it does not mean that rupee is weakening.
Here we should understand these facts:
1) Dollar is getting stronger against almost every world currency except few exceptions.
2) Rupee is getting stronger against almost every world currency except few exceptions.
Reality is that Rupee is one of the better performing currency in the world. Rupee is gaining more strength compared to majority of global currencies including that of bigger economies than India. Hence, Finance Minister is right in saying that Rupee is not weakening.
Hence, Finance minister is right in both aspects:
1) Strengthening Dollar
2) Rupee not weakening
The critics are filled with people who are jealous when India performs good, and they are happy when India performs as these people have their own agenda.
The prime reason they are trolling this statement is because they are unable to digest the fact that Indian Rupee is not weakening.
Thank you for reading!
PS. The values mentioned are subject to change or may have changed from the time of this post to when you read it.