Rupee in free fall, sinks 56 paise to new 16-month low against dollar

[52051]

MUMBAI: The rupee went into a tailspin by plunging 56 paise today, the second biggest single-day fall of 2018, to end at a new 16-month low of 68.07 as panic dollar demand rattled currency market.

It has been in a virtual free fall for the Indian unit which settled a hairs breadth below its intra-day low of 68.15 a dollar.

This is the lowest closing for the rupee since January 24, 2017 when it had ended at 68.15 against the US dollar.

A slew of domestic and external factors has made the fundamentals unfavourable for the rupee - including a massive trade balance deficit and a declining level of foreign direct investment (FDI).

Overall forex market has been hampered on the heels of the boiling global crude prices - its highest advances since 2014 is squeezing the carry-trade returns on the rupee to a point where they are the worst in Asia.

Crude prices hit a 3-year high supported by tight supply and planned US sanctions against Iran that are likely to restrict crude oil exports from one of the biggest producers in the Middle East

More:
https://timesofindia.indiatimes.com...h-low-against-dollar/articleshow/64178704.cms

Our memebers from tin can economy like india cheers for a potential China/US trade war and eagerly to captialized that, but they dont know actually that in the case of giant fights, the first victims are usually ants who watch the fights.

Trump find its quite hard to take on China now, so he, just like most high school bully, may easily turn his attention into much softer target like india.

So just be careful for what you wish for

 

[AViet]

Please move the thread to India section.

 

[Quibbler]

More:
https://timesofindia.indiatimes.com...h-low-against-dollar/articleshow/64178704.cms

Our memebers from tin can economy like india cheers for a potential China/US trade war and eagerly to captialized that, but they dont know actually that in the case of giant fights, the first victims are usually ants who watch the fights.

Trump find its quite hard to take on China now, so he, just like most high school bully, may easily turn his attention into much softer target like india.

So just be careful for what you wish for

You do realize its oil affecting us not your trade war. And we don't defend rupee at certain levels unlike china. How much reserves have you lost in the last 2 years trying to defend yuan ?. Meh

 

[Offshore]

You do realize its oil affecting us not your trade war. And we don't defend rupee at certain levels unlike china. How much reserves have you lost in the last 2 years trying to defend yuan ?. Meh

because india don't have money to begin with, you poor gangga .. hahaha to defend you need money.

 

[Chinese-Dragon]

How much reserves have you lost in the last 2 years trying to defend yuan ?

How much reserves have we gained, do you mean?

If we want to keep the value of the Yuan down, we would be selling Yuan and buying US dollar denominated securities (such as treasury bonds).

Whereas if you want to keep the value of a currency high, then yes you do need to sell off your foreign reserves and buy domestic currency instead.

 

[Quibbler]

How much reserves have we gained, do you mean?

If we want to keep the value of the Yuan down, we would be selling Yuan and buying US dollar denominated securities (such as treasury bonds).

Whereas if you want to keep the value of a currency high, then yes you do need to sell off your foreign reserves and buy domestic currency instead.

Gaining too much reserves is also a sign of keeping currency devlaued. Duh. CPC forgot to tell you in weekly propoganda update ?

 

[Chinese-Dragon]

Gaining too much reserves is also a sign of keeping currency devlaued. Duh. CPC forgot to tell you in weekly propoganda update ?

That's exactly what I said genius?

If we want to keep the value of the Yuan down, we would be selling Yuan and buying US dollar denominated securities (such as treasury bonds).

 

[oprih]

Lmao india's joke economy will shrink.

 

[52051]

You do realize its oil affecting us not your trade war. And we don't defend rupee at certain levels unlike china. How much reserves have you lost in the last 2 years trying to defend yuan ?. Meh

Yes, the trade war affect your little economy, since you run a huge defict to the rest world thanks to your non-existing industrial base, your currency is bigly overpriced so you need international hot money to pop up your currency balance, but with trade war, hot money will go to safer places and leave you and you have no other means of getting necessarily foreign money for trades, thats why your currency will be in free fall mode like most third world countries.

Thats why your currency will jump up and down like most thrid world country, and your account balance will always on verge of default, just like argentina.

As for how much money we spent to "defend" RMB? I think we gain hunderds of billions dollar since 2016, and killed a few hedge funds betting against RMB as a passing time sport during the process.

 

[PurpleStone]

Modi has set a target to bring Indian GDP to 2 trillion by the time he leaves office in 2019.