How indian rupee value increase against US dollar? anybody can explain?
Answers: We are lowering our interest rates faster than India which devalues our currency faster. The US Fed lowers rates when the US economy is in trouble which causes the US dollar to drop. Strong economies create more money for that region (e.g. India) and cause inflation. When there is inflation, those strong economies tend to hold rates up higher relative to the dollar. India is a stronger economy than the US right now, therefore, the US dollar is dropping relative to the rupee.
The dollar has decreased in value against just about every currency lately. The dollar has decreased due to several factors that include a large trade deficit, large budget deficits and moderate inflation. The dollar will continue to fall until those issues are corrected.
Are the mortgage rates dropping contained by ontario canada?
with the open market dropping, it makes one wonder why the rate is at 6% for 5 years next to banks still. would simply make sense to drop rates soon adequate, economy is slopping. so does anyone reflect they will hit a 5% again or lower?5 yr term specificallyAnswers: Perhaps mortgage rates depend to some extent on how risky it is to lend money. When the economy is not doing economically. And there is more risk that some home owners will evasion on their loans. Then banks are reluctant to lend money. And bank decrease the emergency for their loans by keeping mortgage rates high.
When bank begin to be aware of more confident about the cutback and people's ability to money for their mortgages. Then they will start to decrease their mortgage rates.
No financial recession lasts forever. And nearby is a good possibility that mortgage rates may progress down in a few years.
But how low the mortgage rates can be in motion down also depend on the inflation rate. And if the inflation rate increases in the adjectives. Then mortgage rates will likely walk up from where they are today and not down, even if the discount starts doing better.
I dunno.theyre goin up in America..unadulterated estate is dead wer I live
What is the relationship between inflation and interest rate rise?
Answers: Yes, there is typically an inverse relationship, high interest rates equals low inflation, low interest rates = high inflation.
Why? Money, if there is more money in an economy, people tend to spend more, thus (as a whole) driving up the cost of goods and services. If there is less money in an economy, there is less to spend and low demand equals lower prices.
If interest rates are low, money is easier and cheaper to borrow, hence more money in an economy. If rates are high, it is more expensive to borrow, hence less money in an economy.
There is also a conept know as stagflation, when interest rates and inflation both increase, such was the case in the Carter Administration. External market factors or market manipulation may cause stagflation.
question is very interesting - subject of economy is like a ocean - very difficult to see the depth.
inflation and interest rate are razor sharpend on both side - (if fact you should call it all sides - as it has many side ways movement)
When interest rate rise money flow will be towards secured debt market and liquidity is contained - funds availabilty in the maket will be rationalised - it does not guarantee lower inflation - in fact it will have higher inflation because of cash flow management - Bank lending rate will be higher and it will have cascading effect of higher production cost - higher inflation. short term capital inflow will further confuse the strong economy.
if int rate is low (int. cut) debt market will sink and there will be more liquidity and this fuel inflation and outflow of capital to other countries where interest rate is higher or to sound economy (out of country) will this reduce the currency valuation. this will also fuel inflation.
only best judgement in stabiliting economy will give good result - but it takes 1 to 2 years for correction
we have to wait no other go
unlike another answerer.high interest rates usually mean high inflation..and many times,the interest rate (other things being equal) matches the inflation rate....not always.
during the Carter administration.cd's were paying 16%..inflation was near there.....