Funny Rupee Video...
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China excepted. Yuan is at a record high.
Then again, China should have never been grouped with the rest of them to begin with.
phylumchordata
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china has delibrately devalued its currency ... and an American bootlicking China ...v hav a false flagger
StarCraft_ZT
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^^^^^^^
Few people in China likes the so called BRICS, which was invented by Goldman Sachs.
Few people in China likes the so called BRICS, which was invented by Goldman Sachs.
china has delibrately devalued its currency ... and an American bootlicking China ...v hav a false flagger
Are you implying that Yuan is worth even more vis-a-vis the Dollar? Thank you for reinforcing my point. You must be a false flagger.
china has delibrately devalued its currency ... and an American bootlicking China ...v hav a false flagger
Don't you just wish you have the chinese problem of how to properly value your rupee? Indian rupee falls -> foreign investment dry up -> capital flight -> india is fucked.
Don't quit your job, keep sowing dem shoes.
The Indian Rupee Keeps Falling While New Delhi Scrambles for Solutions
The rupee is in trouble, and nobody seems quite sure what to do about it. The Indian currency closed at an all-time low of 64.11 against the U.S. dollar on Wednesday alongside a tumbling market, feeding widespread anxiety over the fact that the government has yet to curb the currencys downward trajectory since it started tumbling in May. On Wednesday, Deutsche Bank issued a report saying the rupee may reach as low as 70 in the coming months.
Its the latest bit of unwelcome news in a bad few years for the Indian economy, which has slowed from its rapid 9% growth rate to a forecast of between 5.5% and 5.7% for this fiscal year.
Why is it the rupees turn to take a beating? Part of the problem is not Indias alone. With the U.S. Federal Reserve expected to start tapering off a stimulus program that has pumped cash into the global economy, investors have grown wary of the emerging markets they became so fond of in recent years. Countries running their own current account deficits (CAD) have borne the brunt of the mood swing: currencies in India, Brazil and Indonesia, among others, have seen drops as investors pull money out ahead of the Feds anticipated tightening.
That problem may be global, but the fact that the Indian economy has some homegrown structural problems has exacerbated the flight of foreign funds. If youre an investor, you want to put your money where theres going to be growth, says Daniel Martin, an economist with Capital Economics in Singapore. The shine has come off India. Its not the glaring success story it was a few years ago.
Thats not a new assessment, but its important now because it means that the core issues slowing down Indian growth are now hurting its currency and, by proxy, Indian consumers who want to buy, say, an imported phone, or foreign carmakers that need to import parts. Those fundamental weaknesses poor infrastructure, unreliable power supply, difficulty in securing land and lots of sticky red tape are all keeping foreign investment out of the country, and thats a problem for a country that imports far more than it exports and thus needs to finance a large current account deficit. When the CAD widens, the rupees decline accelerates further. So even at a time when many emerging markets are looking risky to investors, India is looking riskier than most.
The government is attempting several things to stem the rupees decline, including trying to reduce the CAD by increasing import taxes on gold and limiting how much money Indians can send abroad. In July, after the rupee hit an earlier low, the Reserve Bank of India made moves to raise interest rates to tighten liquidity in the domestic market. That didnt help, and this week, the bank changed tack, announcing it would take action to flow more cash into the economy to bring interest rates down and usher in growth. The move caused markets to open on Wednesday on a note of optimism, but that fizzled by the end of the day.
The rupee is in trouble, and nobody seems quite sure what to do about it. The Indian currency closed at an all-time low of 64.11 against the U.S. dollar on Wednesday alongside a tumbling market, feeding widespread anxiety over the fact that the government has yet to curb the currencys downward trajectory since it started tumbling in May. On Wednesday, Deutsche Bank issued a report saying the rupee may reach as low as 70 in the coming months.
Its the latest bit of unwelcome news in a bad few years for the Indian economy, which has slowed from its rapid 9% growth rate to a forecast of between 5.5% and 5.7% for this fiscal year.
Why is it the rupees turn to take a beating? Part of the problem is not Indias alone. With the U.S. Federal Reserve expected to start tapering off a stimulus program that has pumped cash into the global economy, investors have grown wary of the emerging markets they became so fond of in recent years. Countries running their own current account deficits (CAD) have borne the brunt of the mood swing: currencies in India, Brazil and Indonesia, among others, have seen drops as investors pull money out ahead of the Feds anticipated tightening.
That problem may be global, but the fact that the Indian economy has some homegrown structural problems has exacerbated the flight of foreign funds. If youre an investor, you want to put your money where theres going to be growth, says Daniel Martin, an economist with Capital Economics in Singapore. The shine has come off India. Its not the glaring success story it was a few years ago.
Thats not a new assessment, but its important now because it means that the core issues slowing down Indian growth are now hurting its currency and, by proxy, Indian consumers who want to buy, say, an imported phone, or foreign carmakers that need to import parts. Those fundamental weaknesses poor infrastructure, unreliable power supply, difficulty in securing land and lots of sticky red tape are all keeping foreign investment out of the country, and thats a problem for a country that imports far more than it exports and thus needs to finance a large current account deficit. When the CAD widens, the rupees decline accelerates further. So even at a time when many emerging markets are looking risky to investors, India is looking riskier than most.
The government is attempting several things to stem the rupees decline, including trying to reduce the CAD by increasing import taxes on gold and limiting how much money Indians can send abroad. In July, after the rupee hit an earlier low, the Reserve Bank of India made moves to raise interest rates to tighten liquidity in the domestic market. That didnt help, and this week, the bank changed tack, announcing it would take action to flow more cash into the economy to bring interest rates down and usher in growth. The move caused markets to open on Wednesday on a note of optimism, but that fizzled by the end of the day.
Chinese-Dragon
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China deliberately devalued our currency, yet the Chinese Yuan is currently at a record high against the dollar?
BBC News - Chinese yuan reaches record high
Wall Street Journal - Chinese yuan reaches record high against US dollar
Yep, BRIC is just an investment term invented by Goldman Sachs, to make it easier for people to invest in the world's largest developing economies. Nothing more.
S10
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Indian government should have taken major steps to stop the falling trend of the Rupee when it was still at 50. Instead, they mostly sat on the sideline and watched it snowball into oblivion. Now they want to reverse the fall but is too late to resist the downward momentum.
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