Indian Hotels Now Want Rupees, Not Dollars
Reversing a 180-year trend (see chart above, click to enlarge) from 1822-2002, the USD has fallen by 17% vs. the Indian rupee in the last five years, from a high of Rs. 48.96/USD in May 2002 to Rs. 40.62/USD today, the lowest level for the dollar in more than nine years vs. the Indian rupee.
Result? Indian hotels now want rupees, not dollars.
MUMBAI: On Saturday, most hoteliers across the country will move to a single currency pricing policy: room rates will be quoted in Indian rupees. Historically, hotels have followed a dual pricing system that allowed them to quote room rates in both US dollars - the universally accepted currency - and Indian rupees.
With the weakening of dollar against the rupee, hoteliers feel there is more value for money earned in rupees and hence have decided to price their services in rupees.
Read more here from The Times of India.
(HT: Sanil Kori)