Rupee should stabilise once US reduces speed of its rate increases: Nobel winner

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New Delhi:┬áDouglas W Diamond, winner of this year’s Nobel Memorial Prize in Economic Sciences, says it is difficult to predict exchange rates but the rupee should stabilise once the US “reduces the speed of its rate increases”.

In an email interview to PTI, the American economist also said that when the US raises exchange rates unexpectedly, the dollar tends to appreciate and things will normalise when interest rates are closer to each other in the US and India.

Diamond, a Merton H Miller Distinguished Service Professor of Finance at the University of Chicago’s Booth School of Business, shared the Nobel Prize with former US Federal Reserve Chair Ben Bernanke and US-based economist Philip H Dybvig for their research into the fallout from bank failures.