Hindi English Translation || Editorial || Currency caution: On the Indian rupee’s depreciation

Currency caution: On the Indian rupee’s depreciation

The rupee might still be overvalued (अधिक मूल्य) despite the recent slump (मंदी, गिरावट, कमी)

The Indian rupee is experiencing (अनुभव, गुजरना, सहना) its worst slump in four years. Since the start of 2022, the currency has depreciated (मूल्य कम करना, गिरावट) by more than 7% against the U.S. dollar, weakening past a historic low of 80 to a dollar mark (निशान, चरण, बिंदु) earlier this week. While the Indian currency is not alone in faring (perform, progress, proceed/get along) poorly against the greenback (a dollar, a legal tender note (U.S)), with even the historically (ऐतिहासिक दृष्टि से, आम तौर पर) strong euro and the British pound taking a hammering and weakening (कमजोर, कमी) by more than the rupee has, the fact that (यह तथ्य कि) other currencies too have appreciably (काफ़ी मात्रा में, पर्याप्त रूप) lost value against the dollar can only offer cold comfort (poor/slight consolation or empathy) to India’s real economy. Domestic manufacturers and services providers are now having to cope with (deal with, tackle, handle, manage, put up with) not just higher dollar prices for the raw materials, equipment or other supplies they may need to procure (ख़रीदना) from overseas (from a foreign country), in the wake (as a result of some event, especially an unpleasant one; in the aftermath of, as a consequence of, on account of, because of, owing to) of the supply disruptions (disturbance, interference, interruption) caused by the pandemic (महामारी) and the war in Ukraine, but they also face (be faced with, encounter, experience) mounting (increasing, rising, intensifying, escalating) import bills — the slide (fall, decline, drop, slump, tumble (in value)) means they have to fork out (pay money (reluctantly)) more rupees for the same dollar price from even just a few months ago. The Finance Minister and the RBI Governor have sought to explain the proximate (nearest, near, close, closest; immediate; nearly accurate) causes for the pressure (दबाव, बोझ) on the currency and allay (दूर, कम करना) apprehensions (आशंका, शंका, बेचैनी) that the rupee may be in a ‘free fall (sudden decline of something; relating to something declining rapidly)’, a scenario (situation, backdrop, context) that could ultimately (finally, eventually, in the end) prove rather damaging for macro-economic (relating to the branch of economics concerned with large-scale factors (interest rates/national productivity)) stability by spurring (motivate, inspire, stimulate, encourage, galvanize) imported inflation (when the general price level rises in a country because of the rise in prices of imported commodities, inflation is termed as “imported inflation”) at a time when both fiscal and monetary authorities are battling (fight, stand up to, confront, struggle) to tame (control, moderate, mitigate, soften) runaway (rampant, out of control, uncontrolled, unchecked, unbridled, unhindered, unrestrained, ungovernable) inflation.

While the Minister’s statement in the Lok Sabha cited factors including the Russia-Ukraine conflict and soaring (rising, increasing (rapidly)) crude oil (the raw natural resource that is extracted from the earth and refined into products such as gasoline, jet fuel, diesel and other petroleum products) prices as major drivers ((motivating/deciding) force/factor) of the rupee’s depreciation (मूल्यह्रास), Governor Shaktikanta Das on Friday acknowledged (accept, recognize, realize) concerns about the rupee and pointed to (indicate, suggest, signal, signify, denote, reveal) the fact that foreign portfolio investors (Investors investing in financial assets, such as shares, government bonds, corporate bonds, convertible securities, infrastructure securities etc in a foreign country) were “selling off assets and fleeing to safe haven (refuge, shelter, asylum, place of safety/security)” in the wake of global monetary policy (monetary policy refers to the use of monetary instruments under the control of the central bank to regulate magnitudes such as interest rates, money supply, and availability of credit with a view to achieving the ultimate objective of economic policy mentioned in the Reserve Bank of India Act, 1934) tightening. So far in 2022, FPIs have dumped (put down, deposit) $29.6 billion in Indian equity (share/stock Market) and debt (liability, financial obligation, borrowed capital) after three straight years of net investments, with the prospect (hope, expectation, chance, probability, possibility) of more, sharp interest rate increases by the Federal Reserve (the central banking system of the United States (The Reserve Bank of India (RBI) is India’s central banking institution)) to tame four-decade-high U.S. inflation likely to do little to staunch (restrict, restrain, control, contain, slow, lessen, reduce, diminish) the outflows. The dollar index, a measure (system, standard, criterion) of the greenback’s value against a basket of six major currencies, too offers little reassurance to the rupee. The index (an (economic) data figure reflecting something (e.g. price/quantity) compared with a standard or base value; pointer, indicator) is just shy of (less than; short of) a 20-year high hit (reach, attain, touch (a particular level)) last month indicating that investors are betting strongly on dollar-backed (supported by the U.S. dollar) assets. The rupee’s real effective exchange rate (REER) (REER is the real effective exchange rate (a measure of the value of a currency against a weighted average of several foreign currencies) divided by a price deflator or index of costs), which provides a weighted average (the average of a data set that recognizes certain numbers as more important than others) value in relation to a basket of currencies of its major trading partners, is also signalling that the Indian currency is still overvalued and has room (scope, chance, leeway, freedom, latitude, opportunity (for something to happen)) to depreciate further. Notwithstanding (despite, in spite of, regardless of) Mr. Das’s assertion (declaration, statement, announcement, claim) that India’s underlying (fundamental, basic, primary) fundamentals ‘are strong and resilient (quick to recover, quick to bounce back (from difficulties/problems); buoyant, adaptable, flexible)’ with foreign exchange reserves ‘adequate’, the RBI will need to judiciously (wisely, sensibly, prudently, thoughtfully, well-advisedly) utilise every dollar in its war chest (fund/money reserved aside to be used in a challenging/dangerous situation (e.g. war. campaign, etc.)) to ensure that a likely slowdown (economic decline, recession, slump/depression) in exports and sticky imports do not add more undue (excessive, extreme, immoderate) pressure on the rupee.

Courtesy: The Hindu

Important Word List With Meaning

1.depreciation (noun)

Hindi Meaning - मूल्यह्रास
English Meaning - devaluation, decrease in value.

2.overvalue (verb)

Hindi Meaning - अधिक मूल्य
English Meaning - fix the value of a currency at too high a level.

3.slump (noun)

Hindi Meaning - मंदी, गिरावट, कमी
English Meaning - decline, drop, decrease, reduction, plunge.

4.experience (verb)

Hindi Meaning - अनुभव, गुजरना, सहना
English Meaning - go through, sustain, suffer, endure, undergo.

5.depreciate (verb)

Hindi Meaning - मूल्य कम करना, गिरावट
English Meaning - decrease, decline, drop/lose value.

6.mark (noun)

Hindi Meaning - निशान, चरण, बिंदु
English Meaning - level, stage, point.

7.historically (adverb)

Hindi Meaning - ऐतिहासिक दृष्टि से, आम तौर पर
English Meaning - normally, generally, typically.

8.weakening (noun)

Hindi Meaning - कमजोर, कमी
English Meaning - reduction, decrease.

9.the fact that (phrase)

Hindi Meaning - यह तथ्य कि
English Meaning - used to refer to a particular situation under consideration.

10.appreciably (adverb)

Hindi Meaning - काफ़ी मात्रा में, पर्याप्त रूप
English Meaning - considerably, substantially, significantly.

11.procure (verb)

Hindi Meaning - ख़रीदना
English Meaning - buy, purchase.

12.pandemic (noun)

Hindi Meaning - महामारी
English Meaning - the worldwide spread of a new disease; The illness spreads around the world and typically affects a large number of people across a wide area.

13.pressure (noun)

Hindi Meaning - दबाव, बोझ
English Meaning - burden, trouble.

14.allay (verb)

Hindi Meaning - दूर, कम करना
English Meaning - reduce, diminish, decrease, lessen; alleviate, ease, relieve.

15.apprehension (noun)

Hindi Meaning - आशंका, शंका, बेचैनी
English Meaning - doubt, misgiving, disquiet, concern.

16.fare (verb)

English Meaning - perform, progress, proceed/get along.

17.greenback (noun)

English Meaning - a dollar, a legal tender note (U.S).

18.take a hammering (phrase)

English Meaning - to decrease suddenly and by a large amount in value; to be completely thrashed.

19.cold comfort (phrase)

English Meaning - poor/slight consolation or empathy.

20.cope with (phrase)

English Meaning - deal with, tackle, handle, manage, put up with.

21.from overseas (phrase)

English Meaning - from a foreign country.

22.in the wake of (phrase)

English Meaning - as a result of some event, especially an unpleasant one; in the aftermath of, as a consequence of, on account of, because of, owing to.

23.disruption (noun)

English Meaning - disturbance, interference, interruption.

24.face (verb)

English Meaning - be faced with, encounter, experience.

25.mounting (adjective)

English Meaning - increasing, rising, intensifying, escalating.

26.slide (noun)

English Meaning - fall, decline, drop, slump, tumble (in value).

27.fork out (phrasal verb)

English Meaning - pay money (reluctantly).

28.sought past tense of seek (verb)

English Meaning - try, aim, attempt.

29.proximate (adjective)

English Meaning - nearest, near, close, closest; immediate; nearly accurate.

30.free fall (noun)

English Meaning - sudden decline of something; relating to something declining rapidly.

31.scenario (noun)

English Meaning - situation, backdrop, context.

32.ultimately (adverb)

English Meaning - finally, eventually, in the end.

33.macro-economic (adjective)

English Meaning - relating to the branch of economics concerned with large-scale factors (interest rates/national productivity).

34.macroeconomic stability (noun)

English Meaning - macroeconomic stability exists when key economic relationships are in balance— for example, between domestic demand and output, the balance of payments, fiscal revenues and expenditure, and savings and investment. These relationships, however, need not necessarily be in exact balance.

35.spur (verb)

English Meaning - motivate, inspire, stimulate, encourage, galvanize.

36.imported inflation (noun)

English Meaning - when the general price level rises in a country because of the rise in prices of imported commodities, inflation is termed as “imported inflation”.

37.inflation (noun)

English Meaning - simply meaning “cost of living”; increase of price level of goods & services and vice versa decrease of currency value.

38.fiscal (adjective)

English Meaning - financial, monetary, budgetary.

39.monetary authority (noun)

English Meaning - it refers to the institution responsible for managing the currency of a country, establishing interest rates, and controlling its money supply. The goals of a country’s central bank include stabilizing prices, fostering economic growth, and increasing employment. The Reserve Bank of India (RBI) is the central bank of India.

40.battle (verb)

English Meaning - fight, stand up to, confront, struggle.

41.tame (verb)

English Meaning - control, moderate, mitigate, soften.

42.runaway (adjective)

English Meaning - rampant, out of control, uncontrolled, unchecked, unbridled, unhindered, unrestrained, ungovernable.

43.cite (verb)

English Meaning - refer to, make reference to, mention, point to.

44.soaring (adjective)

English Meaning - rising, increasing (rapidly).

45.crude oil (noun)

English Meaning - the raw natural resource that is extracted from the earth and refined into products such as gasoline, jet fuel, diesel and other petroleum products.

46.driver (noun)

English Meaning - (motivating/deciding) force/factor.

47.acknowledge (verb)

English Meaning - accept, recognize, realize.

48.point to (phrasal verb)

English Meaning - indicate, suggest, signal, signify, denote, reveal.

49.portfolio (noun)

English Meaning - a range of investments (like shares, holdings, securities, equities, bonds).

50.foreign portfolio investor (noun)

English Meaning - Investors investing in financial assets, such as shares, government bonds, corporate bonds, convertible securities, infrastructure securities etc in a foreign country.

51.flee (verb)

English Meaning - run away, run off, take flight, escape.

52.safe haven (noun)

English Meaning - refuge, shelter, asylum, place of safety/security.

53.monetary policy (noun)

English Meaning - monetary policy refers to the use of monetary instruments under the control of the central bank to regulate magnitudes such as interest rates, money supply, and availability of credit with a view to achieving the ultimate objective of economic policy mentioned in the Reserve Bank of India Act, 1934.

57.tighten (verb)

English Meaning - make stricter, make more rigorous, make more stringent.

55.tightening (verb)

English Meaning - an act of making something stricter/rigorous.

56.foreign portfolio investments (FPIs) (noun)

English Meaning - investments in financial assets, such as shares, government bonds, corporate bonds, convertible securities, infrastructure securities etc in a foreign country.

57.dump (verb)

English Meaning - put down, deposit.

58.equity (market) (noun)

English Meaning - share/stock Market.

59.debt (noun)

English Meaning - liability, financial obligation, borrowed capital.

60.prospect (noun)

English Meaning - hope, expectation, chance, probability, possibility.

61.Federal Reserve (US) (noun)

English Meaning - the central banking system of the United States (The Reserve Bank of India (RBI) is India’s central banking institution).

62.decade (noun)

English Meaning - a period of ten years.

63.staunch (verb)

English Meaning - restrict, restrain, control, contain, slow, lessen, reduce, diminish.

64.U.S. Dollar Index (noun)

English Meaning - a measure of the value of the U.S. dollar against six other foreign currencies.

65.index (noun)

English Meaning - an (economic) data figure reflecting something (e.g. price/quantity) compared with a standard or base value; pointer, indicator.

66.measure (noun)

English Meaning - system, standard, criterion.

67.basket (noun)

English Meaning - a group of something (taxes, investments, commodities, currencies & etc.).

68.reassurance (noun)

English Meaning - consolation, comfort, solace, compassion.

69.shy of (adjective)

English Meaning - less than; short of.

70.hit (verb)

English Meaning - reach, attain, touch (a particular level).

71.dollar-backed (adjective)

English Meaning - supported by the U.S. dollar.

72.real effective exchange rate (REER) (noun)

English Meaning - REER is the real effective exchange rate (a measure of the value of a currency against a weighted average of several foreign currencies) divided by a price deflator or index of costs.

73.be weighted (verb)

English Meaning - be planned or arranged in order to put a particular thing/factor in an advantageous or disadvantageous position.

74.weighted average (noun)

English Meaning - the average of a data set that recognizes certain numbers as more important than others.

75.room (noun)

English Meaning - scope, chance, leeway, freedom, latitude, opportunity (for something to happen).

76.notwithstanding (preposition)

English Meaning - despite, in spite of, regardless of.

77.assertion (noun)

English Meaning - declaration, statement, announcement, claim.

78.underlying (adjective)

English Meaning - fundamental, basic, primary.

79.resilient (adjective)

English Meaning - quick to recover, quick to bounce back (from difficulties/problems); buoyant, adaptable, flexible.

80.foreign exchange reserves (noun)

English Meaning - foreign exchange reserves are the amounts of assets /money in foreign currencies that a country has in its central bank (in India, it is Reserve bank of India).

81.judiciously (adverb)

English Meaning - wisely, sensibly, prudently, thoughtfully, well-advisedly.

82.war chest (noun)

English Meaning - fund/money reserved aside to be used in a challenging/dangerous situation (e.g. war. campaign, etc.).

83.slowdown (noun)

English Meaning - economic decline, recession, slump/depression.

84.disconcertingly (adverb)

English Meaning - unsettlingly, disturbingly, worryingly.

85.sticky (adjective)

English Meaning - awkward, difficult, tricky, problematic, delicate, embarrassing.

86.undue (adjective)

English Meaning - excessive, extreme, immoderate.