US$ marching towards 90 to INR is providing good comfort to exporters as they try to re-coupe some of their losses due to tariff imposed. To me this seems to be a deliberate attempt by the Government and RBI to provide impetus to exports.
USD vs INR
Euro vs INR
The next big question will be what will happen to inflation if currency depreciates. This question is answered / offset by drop in oil prices & commodity prices. Inflation is on an all time low in India thanks to drop in oil & food prices and reforms in GST
Smart "netting" move by the Government & RBI -> Netting of currency depreciation with fiscal / monetary measures is a way of informing the world that India is a mature economy which is resilient to external shocks and pressures. Growing internal demand coupled with internal capital mobilisation is further helping India to be immune to external pressures. Let us keep this going folks.
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