In recent years the Australian Dollar has strengthened against a variety of currencies and it’s enjoyed a particularly strong relationship with the Indian Rupee. After an initial dip due to the global economic crisis, the AUD/INR exchange rate fell to its lowest level in recent years (to trend around 31.5802) in February 2009; but since then the ‘Aussie’ has risen steadily. India was less affected by the economic crisis than other countries due to it not being a largely export orientated nation. Other Asian countries, such as China and Japan, are much more dependent on exports and were therefore considerably more affected.
Despite India not being heavily reliant on export trading, the government’s financial situation was weak before the global crisis. This affected India’s ability to thrive as there was a lack of surplus finances to inject into the economy. India has since seen fairly mixed growth, and the Rupee has failed to garner enough strength to pose a serious threat to the Australian Dollar. With the 2014 Iraq crisis affecting both major and emerging-market currencies, the Rupee took a particular hit and slumped to a two month low by the middle of the year. The AUD/INR pairing reached its high point since the financial crisis in September 2013, hitting 60.1335 – almost doubling the figure from February 2009.