question archive If RBI lowers the cash rate as a result of inflation, what are the impacts on the value of the Australian dollar?
If RBI lowers the cash rate as a result of inflation, what are the impacts on the value of the Australian dollar?
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If RBI lowers the cash rate as a result of inflation, what are the impacts on the value of the Australian dollar?
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When there a decline in the cash rate then the more FDI will come in whereas the demand and value of India will decline along with a decline in the exchange rate (the price of foreign currency/the price of domestic currency).
Thus, India's currency will depreciate whereas the Value of Australian dollars will rise; that is, there is an appreciation in the Australian dollars.
