News > Rupee should stabilise once US reduces speed of its rate increases: Economics Nobel winner

Rupee should stabilise once US reduces speed of its rate increases: Economics Nobel winner

In an email interview to PTI, the American economist said that when the US raises exchange rates unexpectedly, the dollar tends to appreciate, and things will normalise when interest rates are closer to each other in the US and India. Asked about the continuous fall of the Indian rupee against the USD, Diamond says, “It is difficult to predict the exchange rates. Once the US reduces the speed of its rate increases, the rupee should stabilise.”