Swaminathan Iyer said that the indian rupee is weakening only against the dollar. The interesting thing is that all the currencies around the world are getting weaker against the dollar. The reason for this is that the central bank has increased interest rates to control inflation that has reached a 40-year high in America.
According to the recent GDP growth estimates of the international Monetary Fund or international Monetary Fund, India's GDP growth estimate has been reduced, but it still remains the fastest growing economy in the world. At a time when the GDP growth of the whole world is going down, India's GDP growth being at 10% is a big news in itself. swaminathan Iyer has said that even if India's GDP growth remains at 7 percent or 6.5%, even then we are performing well in comparison to global GDP.

Recently swaminathan Iyer wrote that even if the rupee reaches the level of 80, there is nothing to worry about the economy of India. swaminathan Iyer said that the weakness of the rupee has nothing to do with politics.
He said, "Maybe some people consider the exchange rate of the rupee to be a matter of physical or mental strength, but I do not believe so. The exchange rate should be competitive, that is the main thing. The question is not how weak the rupee is." It happened or how strong. If you look at the 40 currency basket of Reserve bank of India, then you will understand that India's rupee has also become much stronger than the economy and currency of other countries.
Federal Reserve raised rates
Swaminathan Iyer said that the indian rupee is weakening only against the dollar. The interesting thing is that all the currencies around the world are getting weaker against the dollar. The reason for this is that the central bank has increased interest rates to control inflation, which has reached a 40-year high in America, and foreign investors are investing in America by withdrawing their investments from other countries. It is feared that the Federal Reserve may increase interest rates in the coming times as well.
currency of many countries weakened
At this time only the rupee is not weakening, China's currency Yuan, Thailand's currency bath, Indonesia's rupee, Pakistani rupee is also weakening against the US dollar. The dollar is strengthening due to the tensions of many countries with China, the Russia-Ukraine war, rising inflation around the world, raising interest rates in the US and the after-effects of the coronavirus.
Increased demand for dollars to save capital
Swaminathan Iyer said that at this time the dollar has become the safest medium to save your capital. That's why more and more people around the world are busy buying dollars. Along with this, due to the increase of interest rates by the Federal Reserve, investors start investing in the US by exiting the risky markets, due to which the currency around the world is seeing weakness.