India and UK exchange rates for the week of March 18-21
India and the United Kingdom exchange rates were on a downward trend on Thursday, with the rupee trading at 54.42 against the dollar in New York.
That was a one-week low, but still well above the 52-week average of 50.12.
The dollar has been trading at around 53.17 against the euro since last Tuesday, but its been trending downwards ever since, falling below 53.24 for the first time in more than two weeks.
In contrast, the rupees gained by 0.3% against the pound, to $1.19.
The euro rose 0.1% to $0.817.
Both currencies are also trading at an overvalued discount to gold, at around $1,000 an ounce.
“Both currencies have a very high current account deficit, which means they have large cash flows and large liabilities,” said Chris Woods, head of FX strategy at IHS Markit in London.
“It means they can only borrow so much and spend so much to pay interest on their current account.
The currency wars in the U.S. and in Europe are taking the lead in terms of the dollar and euro as their economies struggle through the aftermath of the Brexit vote.
A strong dollar is now a very strong currency, and it will have to be for the world to have a global currency system.”
India’s economy is growing strongly, and there is a lot of scope for growth there,” said Woods.”
The rupee’s weakness is not a surprise given the global economic downturn.
But the ruoms weakness reflects the weakness of India’s external sector, where its growth is being driven by tourism and agriculture.
“The currency war in the United States has been particularly severe, with two separate trade wars between the U-S.
dollar and the British pound.
The U.K. is in the process of exiting the European Union, and has been trying to negotiate a trade deal with the European countries that use the pound.”
What’s been happening in India is that the U S. dollar is very weak, and the U k of India has been devaluing its currency,” said Glen McLean, chief economist at HSBC in London, in an interview with CNBC on Thursday.
The rupees own strength is not due to the currency wars, however, as it is still recovering from the Brexit fallout.
The ruants economic performance has been aided by a sharp rise in exports, which have been driving the economy, according to the Reserve Bank of India.
While India exports about 5% of its gross domestic product (GDP) to the world, the government has been cutting its imports from the U and the EU, and boosting exports.
The Reserve Bank has been warning of the potential for inflation to reach 5% over the next three years.
The government has also been reducing its foreign direct investment (FDI) to about 10%, while cutting imports.
India is expected to be one of the biggest economies in Asia in 2019, and analysts expect growth of around 4% in 2019.
With the ruants currency at a record low, investors are turning to other ways of earning a profit, including gold, gold futures and other gold investments, which are now worth almost $1 trillion.
Gold futures are priced at $1m per ounce, or $100,000.
However, Gold futures in India have been trading near $10,000 per ounce for years.
It is not the first currency war between the two major economies.
In 2009, the British Pound dropped to $3.00 per pound, but quickly recovered to $4.50.
After that, India and Britain exchanged the pound and the dollar at a rate of $4 and $3 per pound.
On Wednesday, the Indian rupee fell to 62.50 against the U s pound, down from 62.73 a day earlier, at 7:00 p.m.
(ET) in New Delhi.