Rupee Falls Below 68/$ To Become Asia’s Worst Performer In 2018

[sarcastic]

https://www.thequint.com/news/india/indian-rupee-asia-currency-worst-performer

 

Rupee Falls Below 68/$ To Become Asia’s Worst Performer In 2018 

Edited May 16, 2018 by sarcastic

[kira]

But but bjp was gonna fix everything, rupee depreciation was Congress's fault, modi's economic polices transformed Gujrat 

[Gollum]

Will help our exports so at least there's one positive in case bhakts want to spin this news as the promised achhe din. 

 

Edited May 17, 2018 by Gollum

[Tibarn]

Weak currency can help manufacturing/labor market expansion and exports eventually, as long as artificial price controls/floors like minimum wage aren't introduced, but it can't do much without labor reforms at the central level. At the state level labor reforms already are occurring, but the same states as always will/would take advantage of FDI and manufacturing boost. Poorer states won't make the labor reforms themselves, so a central law will be required. 

[Mariyam]

3 hours ago, kira said:

But but bjp was gonna fix everything, rupee depreciation was Congress's fault, modi's economic polices transformed Gujrat 

Can't you see the obvious brilliance of this plan? 

A weak dollar is what this government planned all along to encourage manufacturing in India and thus raise our exports. Its a sub plot in the "Make in India" story.

 

[Moochad]

7 hours ago, Tibarn said:

Weak currency can help manufacturing/labor market expansion and exports eventually, as long as artificial price controls/floors like minimum wage aren't introduced, but it can't do much without labor reforms at the central level. At the state level labor reforms already are occurring, but the same states as always will/would take advantage of FDI and manufacturing boost. Poorer states won't make the labor reforms themselves, so a central law will be required. 

Hurts imports and helps exports correct?

[bhakum20]

Lol in all of history we have never had positive trade balance, so there’s no way you can give a positive twist to this. Import bill will keep rising, but no let’s celebrate when 1$=1000,000Rs

 

When did this idea of weak rupee is good for country start to spread? Let me guess, because it helped China, conveniently overlooking the fact that they have had huge trade surpluses. How dumb can the public be 

[Pollack]

[mishra]

Rupee is very strong. iirc during MMS era, i used to get over Rs 100 for a £1.

To keep Indian economy competitive, current right price should be £1=Rs 125 or in that range.

 

But elephant in the room which is pegging us back to have a freer currency management is massive energy demand and cost oil imports.India needs to moove towards renewable energy sources

Edited May 17, 2018 by mishra

[ravishingravi]

Its not a problem for rupee to depreciate. In fact, rupee needs to depreciate further to be at par price.

 

1) India's fiscal deficit situation 

2) Oil prices ( India is second largest importer of Oil )

3) Possibly unstable govt next year

4) Strengthening of US bonds and growth story picking up in US

[Tibarn]

9 hours ago, Moochad said:

Hurts imports and helps exports correct?

Mostly yes, but any industry which relies on inputs from imports can be hurt depending on the price.

[chewy]

5 hours ago, mishra said:

Rupee is very strong. iirc during MMS era, i used to get over Rs 100 for a £1.

To keep Indian economy competitive, current right price should be £1=Rs 125 or in that range.

 

But elephant in the room which is pegging us back to have a freer currency management is massive energy demand and cost oil imports.India needs to moove towards renewable energy sources

Needs more nuclear power stations, renewables won’t provide reliable supply (baseload), China is building in bucketloads 

 

India has signed many MoUs with big nuke companies but that’s it

[surajmal]

Congress is pulling its cash out (will bring it back prior to 2019 elections) through FIIs to hurt the government. No problem. Goras will see this as opportunity and fill the gap. Give it a couple of months; some may be spooked due to sudden depreciation. Once the GDP data comes next week, you will see a steady uptick. 

On another note, RBI has been fecking with it for far too long to help exporters which hasn't helped anyways. Fecking chutiyas, economists are. Its a disgrace non-science people get a say in nation building of a third world nation to this extent. 

[jusarrived]

its actually dollar which has been very strong 

[Moochad]