Rupee hits 60.92 per dollar, highest in over two months

[Ayush]

Dafuq, after i paid my fees.

dont worry,still many other things to do

 

[Badbadman]

That will be a blessing for exports and manufacturings.



Define "US".

that can be good for me to send money over to India aswell. but have to be balance because imports will be expensive too.

Any way our economy is lookin to gettin back on track. ***** monkeys will start jumpin up down soon on this thread.

 

[Destro]

Exports will give more profit margins, The labor costs in India will come down in dollars, when compared other countries.

Imports will become difficult and so people rely on local manufacturing.

This will reduce the trade deficit and improves much needed manufacturing infrastructure.



When you are sure that Japanese and West are going to invest Billions in India, then devaluing the currency is a good move, China also did that in the last decade.

Wrong again kiddo.

Weak currency means input costs for manufacturing becomes expensive in the long term. The weak currency only benefits in the short term as the inflation takes times to move into the production costs.

Local manufacturing gets destroyed and exports falls and imports fall even more. Trade is lowered and India gets poorer.

Indian rupee has been weakening for years from early 40's to the dollar but we have not seen India become a manufacturing powerhouse.

Why? Because input costs such as raw materials and wages become expensive and manufacturers cannot afford the increased costs which shrinks their margins and many go bankrupt.

But I'm sure 'Indian economics' can defy logic right?

 

[Badbadman]

Wrong again kiddo.

Weak currency means input costs for manufacturing becomes expensive in the long term. The weak currency only benefits in the short term as the inflation takes times to move into the production costs.

Local manufacturing gets destroyed and exports falls and imports fall even more. Trade is lowered and India gets poorer.

Indian rupee has been weakening for years from early 40's to the dollar but we have not seen India become a manufacturing powerhouse.

Why? Because input costs such as raw materials and wages become expensive and manufacturers cannot afford the increased costs which shrinks their margins and many go bankrupt.

But I'm sure 'Indian economics' can defy logic right?

how much is a plate of noodles in china ?

 

[Srinivas]

how much is a plate of noodles in china ?

Leave him, they will argue with you for ever and will post one more post than you every time

that can be good for me to send money over to India aswell. but have to be balance because imports will be expensive too.

Any way our economy is lookin to gettin back on track. ***** monkeys will start jumpin up down soon on this thread.

Imports wise we import mostly Oil and Gold.

GOI is requesting poeple not to buy Gold, India is going for agreements with countries like Iran, Iraq to pay in rupees.

Inflation mainly depends on Oil price in India, If we can pay most of our bills in rupees Inflation can be controlled.

There will be tough times like people may not buy things like mobiles, and other consumer goods, But why we have to aid imports and other countries. Lets make them here.

 

[Imran Khan]

That will be a blessing for exports and manufacturings.



Define "us". Is it "USA" or "Pakistan"?

we common indian pakistani yaar

 

[forcetrip]

what will happen when $ will be no more international currency ? does it effect us or its good for us ?

In reference to Pakistan it will be severely detrimental. We will be even bigger losers than the US .

 

[Imran Khan]

In reference to Pakistan it will be severely detrimental. We will be even bigger losers than the US .

how sir ????????

 

[forcetrip]

how sir ????????

Simple economics on my part have made me come to this conclusion. Our economy has been sustained for as far as I can remember with US $'s, not by Allah as some would think. We have got too used to that aid being considered as earnings within the economy, be it WOT aid or IMF aid. The interesting thing would be to see if the WOT is discontinued from our end once the US leaves. We also have become a nation of importers, all the industrialists have moved to most of their capital into diversifying to less risky businesses whether it be importing or moving their money abroad to start planning to get their families out of the country. All this is speculation and till now the numbers have supported my theory, specially when the dollar gets hit, the Pak rupee gets hit as well. Since I planned to live in this country by mistake I wish I am wrong and if anyone has any balanced insight rather than emotional prayers I would love to hear their theories as well.

 

[Chronos]

Simple economics on my part have made me come to this conclusion. Our economy has been sustained for as far as I can remember with US $'s, not by Allah as some would think. We have got too used to that aid being considered as earnings within the economy, be it WOT aid or IMF aid. The interesting thing would be to see if the WOT is discontinued from our end once the US leaves. We also have become a nation of importers, all the industrialists have moved to most of their capital into diversifying to less risky businesses whether it be importing or moving their money abroad to start planning to get their families out of the country. All this is speculation and till now the numbers have supported my theory, specially when the dollar gets hit, the Pak rupee gets hit as well. Since I planned to live in this country by mistake I wish I am wrong and if anyone has any balanced insight rather than emotional prayers I would love to hear their theories as well.

It's called brain drain and capital flight.

Nice take on the situation

 

[[Bregs]]

The economic turn around in India will start after Christmas holidays

 

[Truth Finder]

we common indian pakistani yaar

Nothing. As long as you have money, it does not matter in which currency you have it. You can easily convert in into other currency if needed.

 

[faithfulguy]

Leave him, they will argue with you for ever and will post one more post than you every time



Imports wise we import mostly Oil and Gold.

GOI is requesting poeple not to buy Gold, India is going for agreements with countries like Iran, Iraq to pay in rupees.

Inflation mainly depends on Oil price in India, If we can pay most of our bills in rupees Inflation can be controlled.

There will be tough times like people may not buy things like mobiles, and other consumer goods, But why we have to aid imports and other countries. Lets make them here.

Even if India can pay in rupee, the price will be in the dollar price. So this is actually an inflation.

 

[Anon4453]

Honestly i don't see anything good about it or about the markets rising despite a really bad economy and bad growth in all fronts .
This is not because of growth, The main reason is :
1) Delay in Tapering from the Federal reserve , cheap liquidity and money .
2) Global Dollar weakness thanks to republicans and US government shutdown
3) Rajan's currency swap things, reforms , and making short term liquidity better for banks .
4) A better than expected CAD in last month/this month and fall in gold imports .
5) Main reason , FII buying massively in markets , which is pulling rupee up .

Majorly , this is due to FIIs buying since they have cheap money because of delay in taper, A lot of it has to do with Rajan effect as well, some positive cues like Chances for Modi victory are lifting sentiment and thus FII are buying more . It has a lot to do with the whole cheap money , weaker US , no taper than anything to do with Indian economy in general , Tough Indian IT sector is doing really well nowadays , it's is the only real sector that is performing well, second could be Pharma , Pharma is still doing well and they are both export oriented , Rest Indian market, demand , retail spending , income levels , GDP growth , The PMI readings , or The IIP data is just showing worse signals and the economy is slowing down further .
At the end , India has earned about 6-7 months more to solve it's mess before US starts to taper .......... it has to sort a ton of issues

 

[Srinivas]

Even if India can pay in rupee, the price will be in the dollar price. So this is actually an inflation.

There are also plans for barter trade between Iran and India