Asia's Worst Performing Currency

[Farooq]

MUMBAI – The Indian rupee sank to a record low against the U.S. dollar Monday, firming expectations that authorities would take tougher action to protect this year's worst-performing Asian currency.

The rupee has come under renewed pressure in recent sessions amid rising concerns about the government's ability to implement economic reforms to attract foreign capital and resuscitate growth.

The dollar was quoted at 52.84 rupees late Monday in Asia, topping its previous record high of 52.725 rupees on Nov. 22. It was buoyed by a selloff in local stocks after domestic factory output contracted for the first time in more than two years as global risk appetite waned.

Authorities have recently taken steps to attract foreign capital portfolio inflows and made it easier for Indian firms to hedge their currency risks, but analysts now expect tougher measures.

"We could see measures like allowing oil importers to buy dollars directly from the RBI [to ease dollar liquidity] and restrictions on customer transactions," said Anindya Das Gupta, managing director at Barclays Capital.

In recent days, the Reserve Bank of India's tone on the rupee has become more aggressive, with the central bank saying it will use all possible measures, including strategic capital controls, if there is escalating risk of the rupee depreciating.

Last week, RBI Governor Duvvuri Subbarao said the central bank would make a "definitive statement" on the rupee's fall at its next rate-setting meeting Friday.

Monday, local stocks tumbled after government data showed India's industrial output in October contracted 5.1 % from a year earlier, after a 1.9% expansion in September. The Bombay Stock Exchange's Sensitive Index slid 2.1% to close at 15870.35.

The dollar has gained more than 18% against the rupee since March. Concerns over domestic inflation, slowing economic growth and a possible widening of the government's budget deficit have made the local unit particularly vulnerable to bad news emanating from the sovereign debt crisis in Europe.

The rupee's weakness has prompted calls for the government to push through economic reforms to attract foreign capital and stimulate economic growth. Yet a major reform that was on the cards – allowing multi-brand foreign retailers into the country – was shelved last week because of strong opposition to the move.

Analysts say local currency, bond and equity markets could be set for a tumultuous week, with November inflation data due Wednesday, followed by the RBI's rate-setting meeting Friday.

Indian Rupee Hits Record Low - WSJ.com

Oh noooooo!!!!! ISI DID IT!!

 

[EndoClock]

I dont think u got any clue how forex works. India has very high interest rates as compared to west to keep growth and hence inflation in check. India can fix this just by decreasing their interest rate slightly and hence encouraging the purchase of rupee , making it stronger. NBD.

So you are saying WSJ doesn't have a clue on how Forex works. Decreasing interest rate encourages the buying of a currency? Sounds like you don't have a clue. The oppose is true. Witness the devalued USD amidst record low interest rate. Currency exchange rate is a matter of supply and demand. Too much rupee makes it cheap. India has printed way too much rupee in the past. Too much rupee has caused the high inflation. It now has caught up to the exchange rate in making it cheaper.

 

[JayAtl]

Being ruled by an Italian woman reminiscent of colonial times brings great benefits to our wonderful neighbors.

as opposed to being ruled by the military and having a puppet for president, having every leader for decades either murdered or run off to England, Dubia or what have you country- once they, if lucky, finish their term? you guys export more in presidents and politicans than anyone in Asia, perhaps world.... and incase you forgot you guys were also a part of that colonial rule.

 

[GURU DUTT]

as opposed to being ruled by the military and having a puppet for president, having every leader for decades either murdered or run off to England, Dubia or what have you country- once they, if lucky, finish their term?.... and incase you forgot you guys were also a part of that colonial rule.[/QUOTE]

Ouch that must have hurt a lot of ego's here!!!!!!....

 

[-INDIAN-]

Lets stop the arguement of whose s*it stinks more.....its a global phenomenon now startin to feature in our Asian continent we have to find a way so as to overcome the crisis caused by the eurozone as a united front instead of making some unwanted rheorics over other asian nations.....as far as India is concerned i m really dying hard to see my calendar showing 2014..I have had enough of this F*&king congress thugs just want to get rid of them...to all the non-indians here stop pretending that only India is facing the heat of economic downturn...if you still say its only India thats going to face the problems better get some treatment regarding mental abilities....

 

[Farooq]

as opposed to being ruled by the military and having a puppet for president, having every leader for decades either murdered or run off to England, Dubia or what have you country- once they, if lucky, finish their term? you guys export more in presidents and politicans than anyone in Asia, perhaps world.... and incase you forgot you guys were also a part of that colonial rule.

No doubt Pakistan has had dictators, military coups and puppets throughout it's history. In fact, Pakistan is still facing this problem with Ghadari regime in office.

However, the point I was making is you people live in denial and fail to see your shortcomings that by becoming lapdogs of the West you are making the same mistake Pakistan made in the past.

The people of Pakistan have woken up to the reality of western enslavement, but Indians still yearn for colonial rule this time by a new master.

 

[GURU DUTT]

No doubt that has had Pakistan dictators, military coups and puppets throughout it's history. In fact, Pakistan is still facing this problem with Ghadari regime in office.

However, the point I was making is you people live in denial and fail to see your shortcomings that by becoming lapdogs of the West you are making the same mistake Pakistan made in the past.

bhai sorry for my ignorence but you say that we are west's puppets but bro what do you call a country which to heart its bigger naighbour allows a superpower to use its airbases& militarry infrastructure against another superpower and in retur destroys its own social , moral & political infrastructure and the buck dosent stops there ....this time around it permits the same superpower to hunt down its own guests & dosent even blinks when the same superpower kills its civillians & millitary personal , any guess what do you call them?????????

 

[xataxsata]

I think Pakistani currency is worst performing

1 dollar = 90 rupees rupees

 

[-INDIAN-]

No doubt Pakistan has had dictators, military coups and puppets throughout it's history. In fact, Pakistan is still facing this problem with Ghadari regime in office.

However, the point I was making is you people live in denial and fail to see your shortcomings that by becoming lapdogs of the West you are making the same mistake Pakistan made in the past.

The people of Pakistan have woken up to the reality of western enslavement, but Indians still yearn for colonial rule this time by a new master.

yeah we are becoming slaves of wests
http://www.nytimes.com/2011/04/29/business/global/29india.html
The Hindu : News / National : India to back Palestinian bid for U.N. membership
http://articles.economictimes.indiatimes.com/2011-12-11/news/30504726_1_climate-change-kyoto-protocol-xie-zhenhua

 

[Farooq]

bhai sorry for my ignorence but you say that we are west's puppets but bro what do you call a country which to heart its bigger naighbour allows a superpower to use its airbases& militarry infrastructure against another superpower and in retur destroys its own social , moral & political infrastructure and the buck dosent stops there ....this time around it permits the same superpower to hunt down its own guests & dosent even blinks when the same superpower kills its civillians & millitary personal , any guess what do you call them?????????

The Western powers are using India against an ever-expanding China, but I can't help it if you guys are brainwashed.

 

[GURU DUTT]

The Western powers are using India against an ever-expanding China, but I can't help it if you guys are brainwashed.

Thanks but no thanks!!!!!

Apni tu jaise taise- Lawaris(Kishore kumar) - YouTube

 

[-INDIAN-]

The Western powers are using India against an ever-expanding China, but I can't help it if you guys are brainwashed.

Read post 39 if still see India as a lapdog of the wests then just continue your

 

[HongWu]

In this European crises ,all emerging markets are getting hit including china but i think effect on India is much more then china.

Well, lets hope this rough patch in our path of progress will last for few months,we will be back on track for sure with 9% growth rate target which is now slumped to 7.5%.

Remove this f*&kin congress

Yes, indians finally understand that China stands firm in the global economic storm because we have $3 trillion US reserves while india has nothing. China actually produces and exports while india only consumes and imports. Now india is in big trouble, the rupee is in a death spiral. Very soon capital will fly out of india, especially indian gold stocks will be unloaded on to the world market. The indian government may need to seize gold from the population to pay its foreign debts.

 

[dipankal]

you consider yourself China ?

 

[ashokdeiva]

Yes, indians finally understand that China stands firm in the global economic storm because we have $3 trillion US reserves while india has nothing. China actually produces and exports while india only consumes and imports. Now india is in big trouble, the rupee is in a death spiral. Very soon capital will fly out of india, especially indian gold stocks will be unloaded on to the world market. The indian government may need to seize gold from the population to pay its foreign debts.

if that makes you happy, then please wish for it.
3 meal a day and a place is good for any human being, so we indians can manage if the Economy is to spiral out, that goes to any country, so please wish for suffering of fellow human beings just because we are born in a different country and not in China.