Why is the US Dollar Higher than Indian Rupee?

Asked 01-Jan-2018
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The US Dollar and the Indian Rupee: A Comparison

The US dollar is considered one of the strongest currencies in the world, and its value is typically higher than that of other currencies, including the Indian rupee. There are several factors that contribute to the relative strength of the US dollar, including economic stability, political stability, and a strong economy.

One of the primary reasons that the US dollar is stronger than the Indian rupee is due to the stability of the US economy. The US economy is one of the largest and most diversified in the world, with a strong focus on technology, finance, and manufacturing. This has helped to ensure that the US dollar remains a safe haven currency, even in times of economic uncertainty.

Another factor that contributes to the strength of the US dollar is political stability. The US has a stable political system, with a well-established system of government and a long history of democratic institutions. This has helped to maintain confidence in the US dollar and has made it a preferred currency for international transactions.

The US also has a strong and transparent financial system, which helps to maintain the stability of the US dollar. The country has a well-developed banking sector and a robust regulatory framework, which helps to reduce the risk of financial instability.

On the other hand, the Indian economy is still in a state of development and is not as stable as the US economy. The country has a large and growing population, which puts pressure on its resources and infrastructure. In addition, the Indian economy is heavily dependent on agriculture and has a large informal sector, which contributes to economic instability.

In conclusion, the US dollar is higher than the Indian rupee due to several factors, including the stability of the US economy, political stability, and a strong financial system. While the Indian economy is growing, it is still not as stable as the US economy, and this contributes to the relative weakness of the Indian rupee. However, as the Indian economy continues to develop and mature, it is possible that the Indian rupee will become stronger relative to the US dollar.

Why is the US Dollar Higher than Indian Rupee