How is it a
claim? It is fact. Literally look up Euro, British Pound, Yen, Canadian dollar, Swiss Franc...any other free floating currency versus USD in the time period we are talking now.
So? Binary results are easy to "predict"....and thus quite baked into the EM fund sentiments last year itself as just one example.
No one that matters interested in comparing a GDDS economy to an SDDS one in the first place (if you know what that is and why that matters).
What is your total market cap again? Then compare it to India per capita....there is your answer...comparing "stability" in a small well (of your own doing) is not all that important to ships in the open sea.
Heck you prefer to build up the depreciation and release it check valve style rather than even dare a free float:
https://www.xe.com/currencycharts/?from=USD&to=PKR&view=1Y
@VCheng
Its all the hallmarks of a low frequency data, low market cap, low investment, low GCF, GDDS regimen (that too for decades now). Bad comparison from the onset to make with your SDDS peer.
So was the rise (about 50% in cpl years) it a bubble before or not? If its a bubble, bursting it a bit to something more sustainable isn't such a bad thing right? Or was it not a bubble and thus now this correction is bad (because it is linked 100% with the underlying floorboard of Indian economy)?
You can't have it both ways. One or the other, tell me which. Both scenarios have their pros and cons and silver linings and potential pitfalls (if you know how stock markets even operate).
But can someone who told me UAE dirham appreciating (on back of USD peg and oil exports) is a bad thing for Indian CAD w.r.t remittance (earned in the same dirham, effectively USD) esp given massive Indian export profile to UAE ....really give me a novel perspective?
Lastly tell me what a 10% fall (correction) actually happened in time-wise (hint: not a week, not by a longshot). Or are you applying some special time compression factor?
https://tradingeconomics.com/india/stock-market