Indian Rupee hits historic low: Now Rs 67.23 = 1 Dollar

[Star Wars]

That is only if government control fiscal deficit. Rating agencies have stated it clearly that they would downgrade India's status to Junk if Deficit crosses 4.8%.


Controlling deficit does not seem to high on priority of welfare leeches.

Hopefully there will be early elections , Y. Sinha already said we need early elections to remove this crisis....

 

[jpsingh]

Over the next five years, India will be on sale. And it will bring serious reforms, good reforms. The chain of events and bad economic management will finally lead to a more efficient economy-but we have to go through years of pain before that.

India is now a failed state with all the problems in that country.

Indian economy is disintegrating right before our eyes.

So much for overtaking us
Dream on!

 

[eastwatch]

I read one article about month ago and it was research by German bank stated that Indian Rs. is over priced and it will be soon hit a price of some where between 70 to 71 against dollar. and on that time INRS was 61

INR71 to $1 will play against the export of Bangladesh. The weak INR will take away some of the export price advantage Bangladesh is enjoying. BDT is already 78 to a dollar. Only three months ago it was 82/83 to one dollar.

BD export items are limited and we just hope India will not be able to slice away our textile market share in Europe and America.

 

[Developereo]

True, but i have also been hearing that the investors are very unhappy with the current govt. and is asking them to leave
We are all aware how Modi is very famous with corporates ... there is an interesting article on that ..

I don't buy that.

I have read analyses which suggest that Modi is over-hyped because his authoritarian, take-no-prisoners style of management won't work at the national level. In Gujarat, he is surrounded by a bunch of yes-men and he doesn't know the art of compromise.

Anyway, chances of him running the show with an absolute majority are nil, so the exact make-up of the next government will be watched very closely.

 

[anonymus]

Hopefully there will be early elections , Y. Sinha already said we need early elections to remove this crisis....

Once this parliamentary session ends on 31'st August, there is no chance of Early election as government would be safe from a no-confidence motion.

 

[Donatello]

Rupee may recover to 61 in next 6-12 months: report

India’s efforts to curb imports, improve exports and attract greater remittances may help it almost fully fund its current account deficit (CAD) this fiscal, and also help the rupee recover to 61-level against the US dollar in the next 6-12 months, according to a Barclays report.

The projection came on Friday even as the rupee rose marginally to 64.30 in early trade following Thursday’s all-time low of 65.56.

“We expect the INR at 61 per dollar in 6-12 months, which partly reflects the current account improvement,” Barclays said in a research note.

According to the global financial services major, the country’s CAD — the difference betw
een the outflow and inflow of foreign currency — has the potential to “surprise favourably”.

The factors narrowing the current account gap include a lower merchandise trade deficit (gold and non-oil, non-gold trade), a steady uptick in services exports and remittance flows, it said.

On Thursday, finance minister P Chidambaram had said the government would make all efforts to contain fiscal deficit at 4.8% and CAD at 3.7% of GDP or $70 billion this financial year.

The government’s efforts come amid deepening worry over the rupee’s slide.

Hit by the US Federal Reserve’s preparations to wind down monetary stimulus, which is driving up borrowing costs globally, rupee has lost 17% since May and the stock market is close to its lowest in 12 months.

Chidambaram has called for calm and said there is no need to panic. “We believe that rupee is undervalued and has overshot what is generally believed to be a reasonable and appropriate level.”

The finance minister has also stressed there is no need for excessive or unwarranted pessimism. “There is no cause for panic that seems to have gripped the currency market and that is feeding into other markets. We are confident that stability will return to these markets and we can get on with the task of promoting investment and growth.”

A sliding rupee is toxic. For a start, it means that India needs to shell out more cash to import fuel, and this in turn raises the prices of transporting goods, leading to higher inflation.

And high inflation means that the Reserve Bank of India (RBI) will hesitate to cut interest rates, a step needed to boost economic growth.

So consumers need to keep paying large chunks of their income every month towards repaying housing loans, even as the cost of food and petrol rises and the prospect of decent salary hikes recedes because the economy is struggling.

Amid the slide, the Deutsche Bank had said in a research note on Wednesday the rupee could touch 70 level in a month’s time.

The fall of the rupee is derailing India’s hopes of raising more than $6 billion from the sale of stakes in state-run firms, jeopardising a key plank of Chidambaram’s blueprint to reverse the country’s economic malaise.

Investor confidence has evaporated amid fears over the rising cost of funding India’s CAD, prompting New Delhi to delay plans to raise much-needed funds through partial privatisations, according to finance ministry sources.

Rupee may recover to 61 in next 6-12 months: report - Hindustan Times



they will remove the subsidies from oil and add it to the FSB ....

If India removes subsidies from oil, then it might save the INR, but will drastically affect economy as fuel prices will go up.

 

[Gentle Typhoon]

My 6 months fee's for Higher Studies in Australia increased from 7.5 Lakh INR to 8.75 Lakh in 4 weeks. Stupid GOI, now middle class will not be able to afford to study abroad.

If India removes subsidies from oil, then it might save the INR, but will drastically affect economy as fuel prices will go up.

We have 40+ % tax on oil, we need to get rid of both taxes n subsidy.

 

[Developereo]

Congress win would completely ruin economy.

They had maximum number of seats in this lok sabha that any party has got in past 22 years yet they ran the most ruinous regime of past 22 years.

You cannot cure disease of communism that is part of DNA of congress

From what I read, the retail reforms were blocked by BJP.

In the end, the problem less about either party, and more about the deadlock.

 

[Edevelop]

Is it 67.23 or 68.50 ???

 

[eastwatch]

Yup, my bet is its going to hit 70 before October.

Can't wait till it hits 70. Gonna be fun

Hopefully it hits 100 before the end of the year, that would be epic!

INR100 = $1? How can you wish this rate? If it becomes so, Indian GDP will be just $1 trillion, and per capita GDP only $850. $850 per capita is even lower than today's $930 per capita of Bangladesh.

 

[anonymus]

My 6 months fee's for Higher Studies in Australia increased from 7.5 Lakh INR to 8.75 Lakh in 4 weeks. Stupid GOI, now middle class will not be able to afford to study abroad.

Dude,

You probably left sinking ship on time. Have a thought for those who have to put up with this nuisance in India.

If Vote-Bank Indians are going to elect welfare leech congress, it is better to leave country ASAP.

From what I read, the retail reforms were blocked by BJP.

In the end, the problem less about either party, and more about the deadlock.

BJP on it's own could block nothing and BTW Retail reforms were executive decision not Legislative.

 

[Enemy]

Is it 67.23 or 68.50 ???

It is now Rs 68.80 = 1 Dollar

Markets off lows after Sensex dips 500 pts, rupee hits 68.80 - The Economic Times

 

[Iggy]

From what I read, the retail reforms were blocked by BJP.

In the end, the problem less about either party, and more about the deadlock.

It will be actively pushed by BJP when they comes to power.. It is like that.. You will see congress oppose it when they will become opposisation.

 

[anonymus]

It is now Rs 68.80 = 1 Dollar

Markets off lows after Sensex dips 500 pts, rupee hits 68.80 - The Economic Times

With syrian bombing just over horizon, 70 is guaranteed and 100 is a possibility.

 

[Hobo1]

Even after such pathetic performance the media still hardly attacks the goverment as it might Modi for his role in gujarat riots.
Looks like sickular congress wants to establish some kind of parity with Pakistan of economic front.