Indian rupee falls second time in two weeks

[American spying]

Its not the trade deficit but the CAD which is responsible. While trade deficit was always there, it was bridged by NRI remittances and lately by hot money and some FDI. The FDI targets did not materialize, hot money is fleeing and the result is for all to see.

Trade is part of the current account balance.

 

[Omtatsat]

Trade is part of the current account balance.

I never denied that. But it has other components too.

 

[HongWu]

Soon one rupee = one Zimbabawe dollar.

Better buy gold now or else GOI will ban buying gold to prop up the rupee!

 

[American spying]

India is going to need major structural reforms to get out of this. China has been forced into major structural reforms to change the economic structure and I think India will need to do the same. India needs to build up its savings, manufacture more, export more, run current account surpluses, become a creditor nation. Then the Rupee will strengthen. If there is no more reforms being implemented, the rupee will go down as investors are losing confidence in the Rupee. Usually it takes a credit rating downgrade to make investors to lose confidence, but it seems the investors don't care about the credit ratings, they have already lost confidence. Indian central bank will have to use more reserves to protect the Rupee.

 

[Omtatsat]

Soon one rupee = one Zimbabawe dollar.

Better buy gold now or else GOI will ban buying gold to prop up the rupee!

It wont go so far but will be unstable for sure.

Regarding Gold - Gold imports are a major cause of CAD.Our Finance Minister would like Indians to stop gold purchase and put money in the stock market. But with the wisdom of ages in their bones, Indians are buying gold...at least the ones who can.

But in the long run it is China which may suffer more...all those worthless US IOUs. Indians always have a lot of gold. And gold is what will be left standing after all this is over.

India is going to need major structural reforms to get out of this. China has been forced into major structural reforms to change the economic structure and I think India will need to do the same. India needs to build up its savings, manufacture more, export more, run current account surpluses, become a creditor nation. Then the Rupee will strengthen. If there is no more reforms being implemented, the rupee will go down as investors are losing confidence in the Rupee. Usually it takes a credit rating downgrade to make investors to lose confidence, but it seems the investors don't care about the credit ratings, they have already lost confidence. Indian central bank will have to use more reserves to protect the Rupee.

Would be true if the world economy was booming. I think in the long run China will suffer more...all that idle capacity and left holding worthless US IOU.

India is much more insular. At the worst, Govt will slash oil imports and ban gold imports.

 

[American spying]

It wont go so far but will be unstable for sure.

Regarding Gold - Gold imports are a major cause of CAD.Our Finance Minister would like Indians to stop gold purchase and put money in the stock market. But with the wisdom of ages in their bones, Indians are buying gold...at least the ones who can.

But in the long run it is China which may suffer more...all those worthless US IOUs. Indians always have a lot of gold. And gold is what will be left standing after all this is over.

Indian consumers are smart, they are buying gold which preserves their wealth. They buy gold not only historical reasons but because of inflation. The worse the currency falls more people will buy gold. India needs to export more, not stop gold imports. You are dealing with the symptoms, not the cause.

China is buying gold but not revealing the total amount to not panic global investors. The US bonds are more strategic investment than investment for money. I think there is an agreement between China and the US that both will help each other. China gets access to US market in return we buy their bonds.

 

[Omtatsat]

Indian consumers are smart, they are buying gold which preserves their wealth. They buy gold not only historical reasons but because of inflation. The worse the currency falls more people will buy gold. India needs to export more, not stop gold imports. You are dealing with the symptoms, not the cause.

China is buying gold but not revealing the total amount to not panic global investors. The US bonds are more strategic investment than investment for money. I think there is an agreement between China and the US that both will help each other. China gets access to US market in return we buy their bonds.

But the US economy is Fu@@ked for ever. And China is buying up their crap bonds which Fed issues to keep the economy alive. You have to encash it sometime.. but u cant do it because then the US economy implodes. I think you have a tiger by the tail.

Indian imports are mainly oil / gold. Otherwise we are very insular and will get by. We also have more than half the world's gold.

 

[Pulsar]

Wow, what an emotional overreaction.

My post was purely based on logic. Normally when a currency goes down, people expect exports to improve. But for some reason, it is not happening in this case.

I explained why that might be, in my follow up post.

Ok, apologies buddy for my over reaction! I thought you were being sarcastic!! It had seemed all Chinese posters here are like Hong Wu the troll. And so the tirade!

Sorry once again! I guess I need to separate the wheat from the chaff!

 

[HongWu]

Rupee is going to 70! Shu-poor-powa coming to India!

Don't be surprised to see rupee fall to 70 per dollar, say experts - The Economic Times

 

[kena]

Rupee is going to 70! Shu-poor-powa coming to India!

/QUOTE]

Come food security bill, it may go to 100.

 

[HongWu]

Indian economy is collapsing before our very eyes! They are turning into Zimbabwe!

Sensex drops 171 pts as rupee plunges to record low vs dollar

 

[IndoCarib]

60 is nothing. brace for 70 soon. NRIs will celebrate, while their families back home suffer.

Why the rupee may fall to 70 against dollar - NDTVProfit.com

 

[Foo_Fighter]

This is NOT right... he published a news which is true. Don't bring Pakistan into it.

Those who live in glass house must not throw stones at others:


$1=PKR 100.

 

[rcrmj]

Something is going on inside India that they are not letting people know.

how dare you to question the world's 'biggest democracy' and its 'free media'!!,

rupee falling is just an orchestrated CCP propaganda to throw mud on Indians face```

 

[rcrmj]

we have been hearing a lot expertise from Indian member here about the collapse of Chinese economy since 2006 when this forum created```

and since here is the sign of india's economy has been suffering difficulties for quite sometimes this year, so should we to have a 'who collapse first' pissing competition to see who slips in the $hyt hole first??