The value of any currency in an economy is hard to bet, to be stable for a long period of time as there are number of factor influencing its appreciation and the depreciation. The currency value of an economy influences the growth rate of GDP in an economy. Several other factors that have a direct influence on the over or the undervaluation of a currency are listed below: Capital flows and the stock market of India It's important to note that in spite of suffering recession, an economy can grow if the capital inflow is constant or continuously rising. In India even if the GDP rate is less, the currency can still get overvalued due to excessive capital inflows made by the FII's in the Indian economy. Global currency trends Like many other currencies Indian rupee have also tied its knot with some of the big economies of the world including the names of UK, US, Japan and Canada. The depreciation or appreciation in the currency any of these, especially in the US dollar, influences the valuation of the Indian currency in one way or the other. RBI Intervention The valuation of the Indian currency highly depends on RBI that manages the 'balance of payments', slight modification in which can define the over or the under valuation of the Indian currency. Oil factors India is a major importer of oil and the valuation of Indian money gets easily affected by the increase in the prices of the crude oil. It can further result in spreading inflation in an economy due to the over valuation of the Indian currency. Political factors Several other factors that affect the currency stability are some political factors like change in the government set up, introduction of new export and import policies, tax rates and many more. Remittances from abroad Conclusively, there are many factors that arise from the economic structure of Indian economy and affect the valuation of the Indian currency that in turn affects the economic growth rate of the economy of a country.
The slack season of the Indian economy typically occurs from June to September, coinciding with the monsoon season. During this period, agricultural activities slow down due to heavy rains, affecting rural income and consumption patterns. Additionally, many industries face challenges due to supply chain disruptions and reduced demand. As a result, overall economic activity tends to dip during these months.
the monsoons could cause the soil to be more fertile making it easier to grow crops
Indian Rupee and its exchange rate historically - 1950 - 4.79 Indian Rupees to 1 American dollar 1955 - 4.79 Indian Rupees to 1 American dollar 1960 - 4.77 Indian Rupees to 1 American dollar 1965 - 4.78 Indian Rupees to 1 American dollar 1970 - 7.56 Indian Rupees to 1 American dollar 1975 - 8.39 Indian Rupees to 1 American dollar 1975 - 8.39 Indian Rupees 1980 - 7.86 Indian Rupees 1985 - 12.36 Indian Rupees 1990 - 17.50 Indian Rupees 1995 - 32.42 Indian Rupees 2000 - 44.94 Indian Rupees 2000 - 44.94 Indian Rupees 2005 - 44.09 Indian Rupees 2010 - 44 to 50 Indian Rupees.
Because of many factors that are occurring in a simultaneous fashion. The crucial ones are: 1. Due to Risk Aversion on the part of Currency Investors, the Demand for the US Dollar has gone up world over 2. Uncertain Economic Situation around the globe 3. FII's turning Net-Sellers and withdrawing funds from the Indian Market
The Indian ocean
Monsoon
indian monsoon
Indian climate is strongly affected by the monsoon winds hence the climate type in India is called monsoon.
The retreating Indian monsoon is commonly referred to as the "withdrawal of the southwest monsoon." This phase occurs typically between late September and October, when the monsoon winds start to reverse and retreat from the Indian subcontinent. The withdrawal is marked by a gradual decrease in rainfall and the onset of drier conditions as the season transitions to winter.
to became cool
southwest monsoon or hanging Habagat is a warm wind,usually coming from Indian Ocean......^_^
The high-pressure area east of Madagascar influences the Indian monsoon by affecting the wind patterns in the Indian Ocean. This system can enhance the easterly trade winds, which are crucial for the southwest monsoon. As these winds strengthen, they help to carry moisture-laden air towards the Indian subcontinent, thus intensifying rainfall during the monsoon season. Additionally, the presence of high pressure can also affect the trajectory of weather systems, potentially altering the timing and intensity of monsoon rains.
Monsoon.
The times of years that it rains in the Indian- Sub continent
Southwest Monsoon
During the summer, seasonal winds called monsoon blow moist air across India from the Indian Ocean.