The recent strengthening of the rupee against the US dollar is feared by some to adversely impact the international trade competitiveness of Indian products and services. SSA Aiyar’s article in today’s ET argues that this strengthening will not be disastrous for our exports.
He says that we should look at the REER of Indian rupee vis a vis the 36 currency basket as this includes many middle and low-income countries with whom
This is just a view taken by him. Events that unfold in the rest of the year may present a totally different picture. But nevertheless we look at it because, it gives us a chance to look at international trade and our rupee’s strengthening from a different perspective.