Comments on: Indian Rupee at a 8 year high, as forex reserves surge past $200 billion http://www.bullishindian.com/indian-rupee-at-a-8-year-high-as-forex-reserves-surge-past-200-billion/49/ Mon, 03 May 2010 09:29:45 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: Bullish Indian http://www.bullishindian.com/indian-rupee-at-a-8-year-high-as-forex-reserves-surge-past-200-billion/49/comment-page-1/#comment-467 Bullish Indian Thu, 31 May 2007 13:09:57 +0000 http://www.bullishindian.com/indian-rupee-at-a-8-year-high-as-forex-reserves-surge-past-200-billion/49/#comment-467 @ Rajesh - To prevent rupee from further appreciating, RBI needs to intervene in the forex markets and buy dollars, thereby increasing the demand for dollars. Now if RBI has to buy dollars it would need to sell rupees, right? So there would be more currency (rupees) in the system. If there is more money in the system then inflation will rise. This is because inflation in crude terms occurs because of "lots of money chasing few products", thus driving the prices of products up. Hope this helps. @ Rajesh – To prevent rupee from further appreciating, RBI needs to intervene in the forex markets and buy dollars, thereby increasing the demand for dollars. Now if RBI has to buy dollars it would need to sell rupees, right? So there would be more currency (rupees) in the system. If there is more money in the system then inflation will rise. This is because inflation in crude terms occurs because of “lots of money chasing few products”, thus driving the prices of products up.
Hope this helps.

]]> By: Rajesh http://www.bullishindian.com/indian-rupee-at-a-8-year-high-as-forex-reserves-surge-past-200-billion/49/comment-page-1/#comment-466 Rajesh Thu, 31 May 2007 12:02:14 +0000 http://www.bullishindian.com/indian-rupee-at-a-8-year-high-as-forex-reserves-surge-past-200-billion/49/#comment-466 Sir, in the above article, it is written that if RBI intervenes by buying USD, then inflation would fuel and would leave more money in the market. Sir, kinly explain this phenomenon. How does this happen?? Thank you Sir, in the above article, it is written that if RBI intervenes by buying USD, then inflation would fuel and would leave more money in the market. Sir, kinly explain this phenomenon. How does this happen??

Thank you

]]> By: Anonymous http://www.bullishindian.com/indian-rupee-at-a-8-year-high-as-forex-reserves-surge-past-200-billion/49/comment-page-1/#comment-3 Anonymous Sat, 14 Apr 2007 13:01:09 +0000 http://www.bullishindian.com/indian-rupee-at-a-8-year-high-as-forex-reserves-surge-past-200-billion/49/#comment-3 <strong>Indian Rupee at a 8 year high, as forex reserves surge past $200 billion...</strong> India’s forex reserves cross $200 billion, for the first time ever. As soon as this data was released by the RBI, the rupee touched a 8 year high and breached the 43.50 per dollar mark. This level was last seen 8 years back! Reserves have risen rapi... Indian Rupee at a 8 year high, as forex reserves surge past $200 billion…

India’s forex reserves cross $200 billion, for the first time ever. As soon as this data was released by the RBI, the rupee touched a 8 year high and breached the 43.50 per dollar mark. This level was last seen 8 years back!

Reserves have risen rapi…

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