Indian Rupee dives a new record low against dollar

[BHarwana]

You are right in case of rupee depreciation but you are wrong on forex reserve and economical growth ..

I am not wrong on the foreign reserves as well. If RBI intervenes on rupee your foreign reserves will plunge down. When rupee touches 72 the pressure on Modi will mount and he is going to utilize foreign reserves to stop it and this will further worsen. Indian economy in bad shape and needs a breather. Modi is in a trap. March 2019 is a deadline for India.

 

[LASER1]

Bhai sahab, do you have any link which can explain how currency appreciation and depreciation works? I don't have much idea but would like to know. Thanks.

I don't have a link that explains that. Appreciation and depreciation work based on demand which you know. The important factor in that is crude oil prices these works in a loop. If crude oil prices go high, the demand for dollar increases, as a result, the companies dump Rupee and convert it to the dollar causing the demand for the dollar to rise. This is just one example.
There is Current Account Deficit which is funded by capital flows and current account surplus generates capital outflows (investment in foreign countries). When there is capital inflows in India, demand for rupees increases leading to rupee appreciation. Capital outflow causes the rupee to depreciate because money moves out as dollars and hence the demand for dollars goes up causing rupee depreciation.

If you didn't get it, I can explain further. This is a simpleton explanation.

 

[BHarwana]

https://twitter.com/x/status/1036965345347559424

 

[Pan-Islamic-Pakistan]

How exactly are we elated with Turkish Lira's fall?

It would make our tourism there cheaper, that's about it.

You guys really need to stop this whole lumping of all islamic countries into one.

While we resent Turkish support for Pakistan politically, we have no enmity with the Turks. In fact, Indians more than ever, are visiting Turkey like there is no tomorrow.

Technically Turkey would be happy seeing their currency fall as it means greater exports of tourism and other export products.



Bhai sahab, do you have any link which can explain how currency appreciation and depreciation works? I don't have much idea but would like to know. Thanks.

Go back and check your compatriots' posts on the threads on the fall of the Lira.

 

[BHarwana]

Another sad day for India. The Rupee makes another record of going low. This is very sad, yes really sad for Indian economy oh boy

@SunilM

https://twitter.com/x/status/1037204565391802372

 

[Tshering22]

Go back and check your compatriots' posts on the threads on the fall of the Lira.

We have hundreds of Indian members here. Everyone thinks in a different way. I am only saying the national stance of India; which is just neutral.

In fact, I would like to visit Turkey and Greece sometime now as it would benefit my pockets.

I don't have a link that explains that. Appreciation and depreciation work based on demand which you know. The important factor in that is crude oil prices these works in a loop. If crude oil prices go high, the demand for dollar increases, as a result, the companies dump Rupee and convert it to the dollar causing the demand for the dollar to rise. This is just one example.
There is Current Account Deficit which is funded by capital flows and current account surplus generates capital outflows (investment in foreign countries). When there is capital inflows in India, demand for rupees increases leading to rupee appreciation. Capital outflow causes the rupee to depreciate because money moves out as dollars and hence the demand for dollars goes up causing rupee depreciation.

If you didn't get it, I can explain further. This is a simpleton explanation.

So basically you are saying that in order to increase the value of rupee, we must start doubling our imports from Iran for oil who are ready to trade in Rupees and gold. Vectoring billions away from Saudi and instead focusing on oil from Iran and even other countries such as Venezuela, Nigeria and Russia would actually allow Rupee to appreciate tremendously as demand for dollar will drop. These countries are not US puppets and don't essentially believe in using the dollar for trade.

Indian Oil has already got stakes in Venezuela and Russia.

If Trump pushes sanctions on us for the S-400 purchase, India should dump the dollar-trading oil suppliers and focus on others who can accept money in Euros, Rupees or even barter gold. It is surprising but trading with Iran will actually benefit us much more than having a string-laced Patriot Mark 3 system.

 

[Tejas Spokesman]

Another sad day for India. The Rupee makes another record of going low. This is very sad, yes really sad for Indian economy oh boy

@SunilM

https://twitter.com/x/status/1037204565391802372

@BHarwana why did you run away instead of replying to my post?

While in past 1 year (ie since Sept 04, 2017) Pakistan currency has fallen by 18.8% whereas Indian currency fell by 12.15%.

 

[BHarwana]

The worst performing currency in Asia indian rupee breaks another record.
This is very sad Indian rupee is becoming a record breaking failure with every second.

https://twitter.com/x/status/1037214021676621824

@BHarwana why did you run away instead of replying to my post?

While in past 1 year (ie since Sept 04, 2017) Pakistan currency has fallen by 18.8% whereas Indian currency fell by 12.15%.

Because you are posting fake news and of topic news. Here we can only discuss Indian rupee it is forum rules. Not going off topic.

The worst currency in Asia is Indian rupee.

https://twitter.com/x/status/1036841796746326021

 

[LASER1]

So basically you are saying that in order to increase the value of rupee, we must start doubling our imports from Iran for oil who are ready to trade in Rupees and gold. Vectoring billions away from Saudi and instead focusing on oil from Iran and even other countries such as Venezuela, Nigeria and Russia would actually allow Rupee to appreciate tremendously as demand for dollar will drop. These countries are not US puppets and don't essentially believe in using the dollar for trade.

That's the big catch. We can't rely on these countries, either they are unreliable like Venezuela. Or chances of getting sanctioned are high, like Iran and Russia. There may be a Saudi hand in forcing countries to quit importing crude from Iran.

If Trump pushes sanctions on us for the S-400 purchase, India should dump the dollar-trading oil suppliers and focus on others who can accept money in Euros, Rupees or even barter gold. It is surprising but trading with Iran will actually benefit us much more than having a string-laced Patriot Mark 3 system.

Oil is just one Major factor. There are a lot of others including our stock market, import of some machinery, electronics etc... which we largely deal in dollars.

 

[BHarwana]

This is really sad very very very sad economic situation for India. Yes this is sad and too bad economically India is becoming a flop

https://twitter.com/x/status/1037210610067488768

 

[LASER1]

This is really sad very very very sad economic situation for India. Yes this is sad and too bad economically India is becoming a flop

Ignorance is a bliss.

 

[Tshering22]

That's the big catch. We can't rely on these countries, either they are unreliable like Venezuela. Or chances of getting sanctioned are high, like Iran and Russia. There may be a Saudi hand in forcing countries to quit importing crude from Iran.

We are stronger than that.

See, creating a special purpose vehicle (SPV) to front the deals pertaining to Iran is important. At the most, this public entity would be sanctioned, which will cushion its impact on the rest of India's banking system. This can easily be done through creating an entity via Mauritius or some other friendly country with significant Indian government clout in the IOR.

Say if the government makes a "National Oil Imports Bank (NOIB)", this bank could easily use back channels to fund itself and facilitate the barter or rupee payment to Iran for imports. Even if this entity is sanctioned, US would only sanction this bank and its immediate backing entity.

The bottomline is, US cannot sanction entire India; It would mean bye bye to billions of dollars of contracts in defence and might even result in banning of numerous companies which earn billions from India in FMCG and other provisions, as well as heavy tariffs on India's imports from US.

US's agriculture industry is already suffering due to Chinese trade war. Antagonizing India as well would only make US more unreliable in the eyes of the world and will result in a churn that will press countries to bypass US in general, including Europe. Europeans are as money-minded as Americans are and if they don't see money benefiting them, they really could end up ignoring the US after seeing the number of sanctions US under Trump would dish out.

Oil is just one Major factor. There are a lot of others including our stock market, import of some machinery, electronics etc... which we largely deal in dollars.

If at all a blanket sanctions was to hit, it would make India and China pretty close to each other. The best thing that could happen in such a situation? A Rupee-Renmibi trade for trade over $100 billion worth of goods.

From my limited understanding, it would damage US economy as badly as it would affect us.

US may not give concessions to us, but it will still have to see a mutually beneficial middle ground.

Otherwise it won't progress any further than we would go backward.

 

[BHarwana]

Indian Rupee also breaking record against UAE currency. The record breaking Indian Rupee is the worst performing currency in Asia. The only time Indian Rupee goes up is during a toss in cricket match other wise th rupee is free falling.

https://twitter.com/x/status/1037215626866171904

 

[LASER1]

We are stronger than that.

See, creating a special purpose vehicle (SPV) to front the deals pertaining to Iran is important. At the most, this public entity would be sanctioned, which will cushion its impact on the rest of India's bank. This can easily be done through creating an entity in Mauritius or some other friendly country with significant Indian government clout in the IOR.

Say if the government makes a "National Oil Imports Bank (NOIB)", this bank could easily use back channels to fund itself and facilitate the barter or rupee payment to Iran for imports. Even if this entity is sanctioned, US would only sanction this bank and its immediate backing entity.

The bottomline is, US cannot sanction entire India; It would mean bye bye to billions of dollars of contracts in defence and might even result in banning of numerous companies which earn billions from India in FMCG and other provisions, as well as heavy tariffs on India's imports from US.

US's agriculture industry is already suffering due to Chinese trade war. Antagonizing India as well would only make US more unreliable in the eyes of the world and will result in a churn that will press countries to bypass US in general, including Europe. Europeans are as money-minded as Americans are and if they don't see money benefiting them, they really could end up ignoring the US after seeing the number of sanctions US under Trump would dish out.

I'm not saying Us would directly sanction India. But there is no cost benefits of fighting off the US. We will deal with the US as we always do, get a concession and, offer something in return and move on. By confronting, we will only make things worse for everyone.

There is no question of US sanctioning India. It's not the 90's.

If at all a blanket sanctions was to hit, it would make India and China pretty close to each other. The best thing that could happen in such a situation? A Rupee-Renmibi trade for trade over $100 billion worth of goods.

From my limited understanding, it would damage US economy as badly as it would affect us.

US may not give concessions to us, but it will still have to see a mutually beneficial middle ground.

Otherwise it won't progress any further than we would go backward.

That will not be a lesser evil. It can still affect the value of our currency. This can only save our forex for a while, but we are not in dire need to save our forex like Pakistan. It is not ideal to give Chinese currencies better chances. Given they can easily manipulate it.

To put into perspective, US dollar transactions on a single day is worth $5 trillion. For a big shakeup, we need more than a China India or Russia. It's not going to happen. The villain is not USD, but our appetite for imports. And many stupid deals we made such as the FTA with ASEAN.

 

[BHarwana]

Global economists are predicting a huge crash of Indian economy and an arrival of recession. This is sad very bad.
@SunilM

https://twitter.com/x/status/1037203313220046849

Indian Rupee is being killed on an hourly basis. The huge debt hanging over India is getting expensive every hour and Indian growth will suffer real bad because of this.