kawaraj
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.India's rupee hit an all-time low against the dollar for the fifth successive trading day on Tuesday amid concern about slowing domestic growth and continuing global uncertainty.
The Indian unit fell to 55.20, below its previous record low of 55.05 a day earlier, as demand for the US currency grew.
The partially-convertible rupee opened Tuesday slightly higher on improved global risk appetite, but steady dollar buying pushed the Indian currency down.
While Europe's debt crisis is a major concern, the rupee has also been affected by several domestic problems including India's widening trade and current account deficits and declining foreign fund inflows.
There has also been pressure from oil importers, who exchange rupees for dollars when they buy crude for energy-scarce India, which imports four-fifths of its crude oil needs.
Many analysts and traders predict the rupee may fall further in the coming days with risk-aversion hitting global markets and sentiment souring over India due to its gaping deficits and poor economic data.
The Indian economy is predicted to have grown 6.9 percent in the last fiscal year to March -- the slowest pace since the 2008 global financial crisis.
On Tuesday, there was no immediate sign of fresh central bank intervention as the rupee weakened further, but the bank is believed to have stepped in to prop up the currency more than a dozen times this year.
The rupee was Asia's worst performing currency in 2011, losing more than 20 percent of its value against the dollar compared to the previous year.
This is what happens when you are drowning in debt. indians businesses soon will no longer accept rupee, gold only. Then you might as well use the rupee as TP.
This is why the Maoists are now in full control of 30% of india. Once the rupee collapses, the revolution will spread like wildfire, and we can look forward to the People's Republic of India.Never Mind Europe. Worry About India.
By TYLER COWEN
THE economic slowdown in India is one of the world’s biggest economic stories, but it is commanding only a modicum of attention in the United States.
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What is disturbing is that much of the decline in the growth rate is distributed unevenly, with the greatest burden falling on the poor. If the slower rate continues or worsens, many millions of Indians, for another generation, will fail to rise above extreme penury and want. The problems of the euro zone are a pittance by comparison.
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For all of India’s economic progress, it is hard to find comparable stirrings in Indian agriculture today. It is estimated that half of all Indian children under the age of 5 suffer from malnutrition.
This is what happens when you are drowning in debt. indians businesses soon will no longer accept rupee, gold only. Then you might as well use the rupee as TP.
Alternatively, new delhi might start demanding all private individuals and hindu temples exchange their gold with the government for "gold certificates" to defend the currency.
With a collapsing rupee, looks like the Rafale deal is off
USA will try to exploit them. China is a hard target. They tried and failed. india is a soft target by comparison.SC you are so wise. I think we have problems in India maybe Americans will help them?
the rupee’s weakness is seen as a sign of more profound underlying economic problems.
Battered rupee highlights India woes - FT.comThis vulnerability stems in part from the eurozone crisis, but more specifically from a distinctly Indian combination of slowing growth and high inflation, alongside growing current account and fiscal deficits that its government seems impotent to remedy.
“There are some emerging economies, like China, which have a reasonable amount of policy space  . . . but India is severely constrained on both fiscal and monetary policy, because of circumstance but also because of poor recent policymaking,” Mr Prasad says.
Short term hiccups in the long run India will be fine. Fear mongering by you guys only works amongst the ignorant- I am studying Economics at LSE and I can see India is going to come good soon enough.
Short term hiccups in the long run India will be fine. Fear mongering by you guys only works amongst the ignorant- I am studying Economics at LSE and I can see India is going to come good soon enough.
Happy? I feel so sorry about it.Does this make you happy???
Things like this happend before. And no country crashed and fell appart like some economists on PDF predict it with our country