US inflation outpaces India’s, so why is the dollar still strong? - Moneycontrol

The outcome of elevated inflation is erosion in the value of an economy’s exchange rate. If a country’s inflation is higher relative to its trading partners’, its currency has to adjust down.

The US is in the grip of its worst bout of elevated inflation and at 9.1 percent in June, the pace outstripped that of many emerging-market economies, including India. High inflation has traditional… [+5143 chars]

full article...