Trump's Win: Rupee Hits All Time Low, Indian Economy at Risk?

Economic experts say India's trade relationship in the last decade has increased dramatically, but an impending 'FX War' will adversely affect the world economy. Global currency devaluation is creating instability in foreign exchange markets and the highest challenge ahead lies in the US dollar's rise.

"The FX War may leave a far-reaching impact on India and the world economy," said an economic analyst. "India cannot be insulated from the inevitable decline of China and other Asian economies." Dollar gains on interest rate policy by Federal Reserve and the recent US elections.

However, experts say that a currency market across the globe is complex and volatile. "Escalation of FX War could be disastrous to the global economy," said an expert. While the world economy is seen stumbling on the edge of uncertainty, one thing stands clear: the blow of the FX war will go well beyond the Indian border. Investors are increasingly drawn to the dollar, which is exacerbating the situation. Trump's victory provided temporary support to the dollar, but the global currency market is complex.

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