Money appreciation

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Piyush Kumar Srivastava (Querist)
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25 September 2007 Why money is appreciating against doller so fast. what are the factors contributing to it. What are the other factors that can contribute to money appreciation. is it good for economy. what are measures to stablise money

Mallidi Ramabrahmananda Reddy

Mallidi Ramabrahmananda Reddy (Expert)
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26 September 2007 Appreciation of rupee against dollar. The demand and supply of dollars in India decide the strength of rupee. when the supply is more than demand of dollars in India is more the value of dollar will fall in India. There are two ways one is increase in supply or the other is decrease in demand of dollar in India. The dollar flow to India is increased due to remittances received from NRIs and FII and IT boom.The increase in productivity of the country is another factor contrubuting the money appreciation. It is very good for the economy if it continues for a long time like experience by U S economy.