Rupee should stabilise once US reduces speed of rate increase, says Economic Nobel Prize winner
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Douglas 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, he 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.