Skidding Rupee Hits Record Low Against Dollar

[IndoCarib]

A bad news for the importers. You don't have much oil in India.

---------- Post added at 04:51 PM ---------- Previous post was at 04:51 PM ----------

No matter it is a good news or bad news, apparently there is nothing your central bank can do about it.

So much for your ignorance;

India’s central bank loosened rules for companies to borrow abroad and raised the interest rate on bank deposits by its citizens living overseas to help stem the decline in Asia’s worst-performing currency.

India Eases Rules to Boost Dollar Supply After Rupee Slides to Record Low - Bloomberg


Indian Rupee Gains After Eight Sessions - WSJ.com

 

[SinoChallenger]

I recall a youth slapped an indian politican because of food inflation.

A major indian airline went bankrupt.

PM Singh said that india is on the brink of collapse because of political problems.

But hey they have the money to buy Eurofighters so maybe india is the future Asian superpower after all.

 

[mastaan]

I recall a youth slapped an indian politican because of food inflation.

A major indian airline went bankrupt.

PM Singh said that india is on the brink of collapse because of political problems.

But hey they have the money to buy Eurofighters so maybe india is the future Asian superpower after all.

And,... your point is?

Comparing a massive global slowdown, take out out conext the point of a private airline having difficult times (mind u, it is still not bankrupt), then a slapgate news and then a statement from PM on internal politics and in one swipe (in a super sarcastic way) with the uppity attitude (of look at em) you want to infer that oh, look, India has so many problems but still they are buying defence hardware... (That too $10-20 billion over three to five years from a $1 trillion + economy)? Do you even see the loss of structured thought, logic or anything reasonable in your inferences?

Get some course in reasoning... And, i am happy to reason on any points that you mentioned as long as you you want to have a logical debate about them...

Back on point on currency fluctuation for good or bad, We have seen bad days and good days... But, more importantly, the world knows that our currency is 'driven by market forces' and not 'controlled or maipulated' by the government. Any interventions in the market are always above the line interventions and no one can question us on that. Though this is a difficult situation and increasing demand of greenback for fleeing FII money is kicking up the prices, I am still very proud of the fact that we are being 'fair' about it and that means that the same investors will come back, because the 'trust' is there for application of fair principles... Can you decipher the meanings of these words?

 

[FairAndUnbiased]

I'd just like to say that a currency losing value means one of 2 things:

the government is printing more money than the physical economy can keep up with.
people are fleeing the currency.

Now, India's physical economy is apparently not doing too badly. So why would people flee the currency? I think the answer may be that India has severe structural problems in its economy that are unlikely to be solved in the short-medium term.

 

[IndoCarib]

I'd just like to say that a currency losing value means one of 2 things:

the government is printing more money than the physical economy can keep up with.
people are fleeing the currency.

Now, India's physical economy is apparently not doing too badly. So why would people flee the currency? I think the answer may be that India has severe structural problems in its economy that are unlikely to be solved in the short-medium term.

You can fool your fellow Chinese & Pakistani forumers with your half baked knowledge of economics, but not Indians.

 

[mastaan]

I'd just like to say that a currency losing value means one of 2 things:

the government is printing more money than the physical economy can keep up with.
people are fleeing the currency.

Now, India's physical economy is apparently not doing too badly. So why would people flee the currency? I think the answer may be that India has severe structural problems in its economy that are unlikely to be solved in the short-medium term.

Utter rubbish... Here is someting for you to munch on... and let me know if you can digest it... I can explain more...

FII investments (which is dollar investment, converted into Indian Rupee) by money brokers, hedge funds and investment houses flees any market for two reasons... 1. Massive Political issues or civil war... Which puts a high risk on the investment in the market and 2. To cover for shorts in their home markets or to ensure the pressure of withdrawls in home markets ...

India does not have thet first issue due for the next 2 years, due to the fact that there are no elections or political undertainty (like monks burning themselves or a dictator runnning the show etc etc) to start a civil war. So, this has to be ruled out as the reason. India depends on home consumption for 75-80% of her production, so any slowdown in the world has relatively (as compared to China or South East Asian economies) lesser effect on India.

For point 2, there is a genuine concerns as investors are withdrawing their money from banks and hedge funds an placing them in secured investments, second issue is global delevraging on the back of loss of risk appetite globally and the diversion of funds to bonds on european markets and the consideration of dollar as the curreny of last resort and due to those withdrawl pressures and conservatism, demand for greenbacks (dollars) shoots up and when demand for any commodity shoots up in a low supply market, the reason is price increase and this is all you are seeing...

FII money has no effect on structural issues.. that is FDI money and that is relatively long term money and thus does not and can not flee quickly... e.g. if you have invested in a plant/facility in India, you can not sell it overnight...

Does this greek make any sense to you now?

 

[foxbat]

Good for oversea indians bad for india indians

Very good for India Indians working in Export related industries.. My stock options just gained 10% in a couple weeks

 

[Hafizzz]

and why are u telling us this????

He is telling the general public (non-Indians)

 

[Doctor09]

Good news for me (and other NRIs)

dear dont think for only your benefit ... think about its effect on India

---------- Post added at 06:20 PM ---------- Previous post was at 06:19 PM ----------

Very good for India Indians working in Export related industries.. My stock options just gained 10% in a couple weeks

what about imports ?

 

[BLUE_ Pheonix]

I recall a youth slapped an indian politican because of food inflation.

A major indian airline went bankrupt.

PM Singh said that india is on the brink of collapse because of political problems.

But hey they have the money to buy Eurofighters so maybe india is the future Asian superpower after all.

give me one link in which our pm siad that?

 

[ChinaToday]

Very good for India Indians working in Export related industries.. My stock options just gained 10% in a couple weeks

yes you are right but the problem is india export only account to 15% compare to 35% of import, which interm mean everything will be more expensive for indians living in india.

 

[foxbat]

yes you are right but the problem is india export only account to 15% compare to 35% of import, which interm mean everything will be more expensive for indians living in india.

True, the expenses will go up on import items.. Result - Indian goods sell more (where there is a choice), FD Investment in India goes up with Rupee becoming cheaper (kind of nice timing of the recent policy of allowing 51% FDI in 400 billion dollar multi brand retail sector in India) etc etc.. Not a bad thing when the economy is sluggish, and you have a few hundred billion in forex reserves to absorb a temporarily increased import bill