Rupee extends big fall, nears 56 mark, Will the Rafale Deal game over?

[laman12345]

I disagree with your point #1.

The Indian Rupee has consistently fallen in value for DECADES. I will find the chart and citation to prove it. Be back in five minutes.

Yes 100% Support you

it was around ($30 Rupee vs $1US) in 1990... now $56.........OH SO POOR INDIAN MONEY

 

[ares]

I disagree with your point #1.

The Indian Rupee has consistently fallen in value for DECADES. I will find the chart and citation to prove it. Be back in five minutes.

You can show charts ..I can give you the reason.
Major fall came in early 90s ..when Indian economy was liberalized..until then India had a regulated economy..like Soviet union, with govt controlling the ER(like China).

 

[GR!FF!N]

wake up, the Rafale Deal is not final Yet. But Rupee Keep Falling OH POOR!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!



No Future India Rupee. Because

India HUGE TRADE DEFICIT hit 185 billions record in 2011. Rupee keep big falling

and also The sad fact is India Rupee will never recover and keep falling

Due to India HIGH DEBT, HIGH UNEMPLOYMENT, HIGH INFLATION, HUGE TRADE DEFICIT, HIGH FISCAL DEFICIT (Gov's expend more than income) ...terrible!! haha


http://www.defence.pk/forums/indian...ars-56-mark-will-rafale-deal-game-over-2.html

looks like you lost your sleep over falling of rupee and uncertain future over Rafale..don't worry,take a nap.we'll let you know when Rafale is going to whip your @$$$$$..now shoooo...

oo by the way,you should take a good look over Pakistan..its rupee is falling too..hope you'll open another thread on them and they will whip you same like we did

 

[laman12345]

I disagree with your point #1.

The Indian Rupee has consistently fallen in value for DECADES.

Fifteen years ago, the exchange rate was 33 Indian Rupees per U.S. dollar. It is now at 56 Rupees per dollar. The Rupee has lost almost half of its value.

You tell the truth. thanks

 

[Martian2]

You can show charts ..I can give you the reason.
Major fall came in early 90s ..when Indian economy was liberalized..until then India had a regulated economy..like Soviet union, with govt controlling the ER(like China).

No, that is not the reason. The consistent underlying reason is India's massive trade deficit.

Your Indian rupee must drop in value, because you're importing a lot more than you are exporting. This phenomenon happens to plenty of Third World countries, like Vietnam and Greece (soon to join the developing world).

 

[Splurgenxs]

I disagree with your point #1.

The Indian Rupee has consistently fallen in value for DECADES.

Fifteen years ago, the exchange rate was 33 Indian Rupees per U.S. dollar. It is now at 56 Rupees per dollar. The Rupee has lost almost half of its value.

do u even read what u post Mr Ctrl-c ctrl-v


it clearly shows that the currency dropped to below 45 during the 2006-2009 period,

The currency was then engineered to fall during the boom 2009-2010 period in the interest of getting more returns on exports.

Stick to ur regular banter and copy paste dont try to use ur meager grey resources.

No, that is not the reason. The consistent underlying reason is India's massive trade deficit.

Your Indian rupee must drop in value, because you're importing a lot more than you are exporting. This phenomenon happens to plenty of Third World countries, like Vietnam and Greece (soon to join the developing world).

Wrong

when a country imports the currency gains value . When other countries hold onto ur currency the held currency has the tendency to become scare and hence gain value.

A key effect of devaluation is that it makes the domestic currency cheaper relative to other currencies. There are two implications of a devaluation. First, devaluation makes the country's exports relatively less expensive for foreigners. Second, the devaluation makes foreign products relatively more expensive for domestic consumers, thus discouraging imports. This may help to increase the country's exports and decrease imports, and may therefore help to reduce the current account deficit.

Again read some books instead of propaganda

 

[laman12345]

do u even read what u post Mr Ctrl-c ctrl-v


it clearly shows that the currency dropped to below 45 during the 2006-2009 period,

The currency was then engineered to fall during the boom 2009-2010 period in the interest of getting more returns on exports.

Stick to ur regular banter and copy paste dont try to use ur meager grey resources.

India Rupee breaks the Historically Low Record again and again.

That's is the terrible Fact

FACE THE FACT!

 

[Martian2]

do u even read what u post Mr Ctrl-c ctrl-v

it clearly shows that the currency dropped to below 45 during the 2006-2009 period,

The currency was then engineered to fall during the boom 2009-2010 period in the interest of getting more returns on exports.

Stick to ur regular banter and copy paste dont try to use ur meager grey resources.

Wrong

when a country imports the currency gains value . When other countries hold onto ur currency the held currency has the tendency to become scare and hence gain value.

A key effect of devaluation is that it makes the domestic currency cheaper relative to other currencies. There are two implications of a devaluation. First, devaluation makes the country's exports relatively less expensive for foreigners. Second, the devaluation makes foreign products relatively more expensive for domestic consumers, thus discouraging imports. This may help to increase the country's exports and decrease imports, and may therefore help to reduce the current account deficit.

Again read some books instead of propaganda

Here, go argue your b.s. claims against the Wall Street Journal

You can claim whatever you want. Why don't you argue against an article from the Wall Street Journal that links the Indian Rupee's fall to India's trade deficit? I don't have time to waste on idiots like you and your nonsense.

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Indian Rupee Falls To Four-Month Low - WSJ.com

"Indian Rupee Falls To Four-Month Low
May 3, 2012, 2:40 a.m. ET

By NUPUR ACHARYA AND SHEFALI ANAND

MUMBAI—The Indian rupee sunk to a four-month low against the U.S. dollar early Thursday amid growing concerns about the country's gaping budget and trade deficits and worries capital inflows will remain weak due to slowing domestic economic growth.

The U.S. dollar was trading at 53.19 rupees in mid-morning trade. Earlier in the day, the dollar was up at 53.27 rupees, the local currency's lowest level in four months.

India's current account deficit, currently at about 4% of gross domestic product, has shaken investors, pushing Standard & Poor's last month to warn that it may downgrade India's long-term debt to junk status if things don't improve.

The deficit, which reflects that imports are outpacing exports, has been fueled by higher oil import costs. The government's burgeoning budget deficit, caused by large subsidies on fuel and massive welfare program spending--coupled with slowing economic growth--has added to investor concern.

The economy grew 6.9% in the year to March 31, below rates of almost 8% in recent years amid signs foreign investors are turning their backs on India due to impatience over the slow pace of business reforms.

"A turnaround in the rupee is likely to be delayed if the recovery in India's growth disappoints or crude prices gain more than expected in the fiscal second half," Standard Chartered Bank STAN.LN +0.51% said in a report.

For now, there're few signs of a turnaround in India's external trade picture. Data out earlier this week added to pressure on the local currency Thursday, analysts said.

On Tuesday, the government reported that India's merchandise exports fell 5.7% to $28.7 billion in March year-on-year. Imports grew 24.2% on-year to $42.6 billion, leading to a trade deficit in March of $13.9 billion.

Higher imports mean India is buying more dollars, whereas lower exports reduce the supply of dollars in India.

Abhishek Goenka, chief executive officer of Mumbai-based India Forex Advisors Pvt., said Indian importers were buying up dollars now expecting further weakness in the rupee in the near future, exacerbating pressure on the local currency. "That sort of fear thing is coming in the market," Mr. Goenka said.

The Reserve Bank of India's decision not to intervene aggressively in currency markets has added to importers' fears of further weakness, he added.

The central bank last month cut its key interest rate by half a percentage point to 8%, its first cut in three years, in a bid to boost economic growth. But the bank also cautioned that it might not have room to cut rates much further in months ahead due to lingering concerns about inflation, which remains around 7%-8%.

Some analysts are now saying the central bank may have been too quick to loosen its monetary policy.

India relies on imports for 80% of its oil needs and a sharp rise in global crude prices could balloon the trade deficit and add to inflationary pressure later this year, a risk flagged in the HSBC Manufacturing PMI data for April released Wednesday.

The seasonally adjusted HSBC Purchasing Managers' Index, prepared by Markit, rose to 54.9 in April from 54.7 in March, after slowing for two consecutive months.

Leif Eskesen, chief economist for India and Southeast Asia at HSBC, said inflation accelerated with both output and input prices rising at a quicker pace in April.

"This suggests that upside risks to inflation remain and that the Reserve Bank of India's rate cut could turn out to have been premature and too aggressive," Eskesen said.

Kumar Rachapudi of Barclays Capital said the fundamental picture for the rupee remains negative given the weak trade data. A poor global economic picture--with the deepening euro-zone debt crisis and a shaky recovery in the U.S.--have added to pressure on the rupee as investors look for U.S. dollar safe-haven investments.

"In the near term, there are pressures as (the) global backdrop remains weak and portfolio flows are muted, creating a pressure on the rupee," he said. "Further depreciation in the rupee will be due to a broader dollar strength and a sharp decline in the euro from the current levels," he added. "

 

[laman12345]

First, devaluation makes the country's exports relatively less expensive for foreigners. Second, the devaluation makes foreign products relatively more expensive for domestic consumers, thus discouraging imports. This may help to increase the country's exports and decrease imports, and may therefore help to reduce the current account deficit.

Again read some books instead of propaganda

Source: http://www.defence.pk/forums/indian...ll-rafale-deal-game-over-3.html#ixzz25fjunLfi

1. Your Country's Imports is much more than Exports all the time, so shut up

2. The Latest Data comfirms it: Aug 2012, Indian exports in steepest fall in 3 years

3. (India) A New Huge Trade Deficit Record is making once again in 2012

 

[Splurgenxs]

Higher imports mean India is buying more dollars, whereas lower exports reduce the supply of dollars in India.

^^good back to ye ol copy paste...do u even know in what context is tht being said and does it even have an effect on currency?

will u be kind enough to inform me on y this phenomenon is occurring and i may then decide to entertain this ignorant banter.

Funny thing is he profile says he is 39 years old.

Seriously? ,well now thts just sad.

 

[Contract Killer]

Can this help all our Chinese & Pakistani friends here........

Indian Rafale deal almost finalized between the MoD and the Dassault Aviation | France Defence

 

[kkacer]

India isn't paying for Rafales in one go it will paid over many years n not tomorrow u idot that u people r coming with new threads on a daily basis qouting daily exchange rates

you tell us a very bad news.

India need to pay more and more because Rupee is falling due to huge trade deficit

 

[Contract Killer]

you tell us a very bad news.

India need to pay more and more because Rupee is falling due to huge trade deficit

Why it is itching you guys. Its our money, our cup of tea..... we will spend/have it the way we want.

Relax dear.

 

[Splurgenxs]

let this stupid thread die FFS

 

[RPK]

Business Line : Markets / Forex : Rupee trading strong at 55.43 Vs dollar