Currency rates of any country are determined using the fiscal value and imports, exports ratio, capability. Sri Lanka is facing huge economical crisis as the country doesn’t have any foreign currency and can’t afford to buy as well, at the current rate, compared to Sri Lankan Rupee. Hence, the inflation in country is at all-time high and people are forced to buy even commodities at higher prices than usual.
India is a vast country and distributed economy, hence, it will have ample time to recover from a crisis or at least a period of time to not let the thigs go drastically out of hands. Still, there is every chance of India too looking down the barrel if the Rupee slumps down further and further.
Rupee reached an all-time low with 77.42 exchange rate per one USD. This is 52 paise higher than previous rate and if this slump continues, India will be looking at dangerous inflation and recession. Experts predict that Rupee will soon slump 80 vs USD and markets need to prepare for that.
NRIs who are looking invest in India might find this time with high exchange rate, right time but if inflation increases rates for them will also double up in no time. Indian government needs to act fast for rupee to recover against USD.