Rupee appreciation, interbank cheap
The Indian rupee has been on a roller coaster ride in recent years, with its value fluctuating wildly against major currencies. In particular, the rupee's recent appreciation against the US dollar has caused a stir in financial markets and raised questions about the factors driving this trend. Additionally, the interbank lending rates have remained low, prompting investors to search for more lucrative investment opportunities. This article examines the reasons behind the rupee's appreciation and the effects of the low interbank lending rates. Reasons behind the Rupee's Appreciation One of the primary reasons behind the rupee's appreciation is India's improving economic fundamentals. The country has made significant strides in improving its fiscal and current account deficits in recent years, which has helped boost investor confidence in the country. The fiscal deficit, which is the difference between the government's spending and revenue, has been on a downward...
