indian Rupee hits new low of 54.82 per dollar

[Abhishek_]

Oh yea right we see your mates on here telling us how you are this incredible shining etc

progress is there, along with the issues. why is that bothersome

 

[deckingraj]

And all this from a blog....
Why is a big deal made of currency value fluctuations? Devaluation of the rupee on short term it will lead to some inflationary pressure, but on the long term will be beneficial to the economy with exports becoming more competitive..

Well you are applying economic concepts in a very myopic manner...If everything else remains same then what you are saying is correct...However think from a holistic factor. Due to high interest rates our corporates are finding it extremely difficult to carry on their biz(forget expansion)...On top of that inflationary pressure is keeping RBI at bay as far as reduction of rates is concerned... With ruppee plunging on daily basis and FDI almost non existent(Thanks to our political paralysis) we are looking at a very grim picture...We need to take some solid steps(combination of both discretionary and monitory) or else we will be hit by BOP crisis...which is going to be very very bad...

 

[shuttler]

I can imagine the panic @ RBI every minute trying to cover the lost grounds on the rupees against the dollar but with the inflation rate at as high as 7 to 8%, inflation and deficits will get worse with the plummeting rupees, spiralling interest and import costs!

You can pledge the $120 billion Rafale and your Russian aircraft carrier as collaterals, I guess!

 

[timetravel]

We have a much stronger balance sheet and a good c/a!
In 2010, USA alone paid us US$ 413 billion interest on $1.15 trillion loan.
That interest income is above indian's fx reserve at $294 billion.

really US is paying u that much interest rate -- 36% per annum

I must say chinese are evil then

now I must admit the same line would be a hit in Chinese forums... chinese are so gullible... and explains why they are so easily controleld by ccp's fake news and data like this one...

 

[IND151]

India's "external debt" is bigger than their currency reserves.

Whereas China's currency reserves alone are about $3.2 trillion.

On topic: Begging in front of a credit ratings agency, is probably the fastest way to convince them that you are not credit-worthy.

i urge you to do not post like a typical poster

you are clever member and with knowledge so kindly behave like one

and don't reply as you always do like " i used to post sensibly but after months of ................ calling by Indians..."

there are several Indian and Chinese members here who's posts are high quality and they remain on topic despite being provoked

so don't give the above excuse again

post like old CD



on topic> GOI must take right steps to control situation

but as UPA is coalition govt, i don't think a very major decision will be taken till 2014

 

[lem34]

I can imagine the panic @ RBI every minute trying to cover the lost grounds on the rupees against the dollar but with the inflation rate at as high as 7 to 8%, inflation and deficits will get worse with the plummeting rupees, spiralling interest and import costs!

You can pledge the $120 billion Rafale and your Russian aircraft carrier as collaterals, I guess!

Maybe Americans will assist Indians

 

[Aramsogo]

really US is paying u that much interest rate -- 36% per annum

I must say chinese are evil then

now I must admit the same line would be a hit in Chinese forums... chinese are so gullible...

Gullible is when you pay the world's highest price for gas relative to income so Mukesh can live above you like a God.

 

[miss]

I went to the bank yesterday to withdraw some cash. They have started giving it in rolls now. They even asked me 2-ply or 3-ply.

 

[dearone4u_22]

We have a much stronger balance sheet and a good c/a!
In 2010, USA alone paid us US$ 413 billion interest on $1.15 trillion loan.
That interest income is above indian's fx reserve at $294 billion.

Lol 36% per annum on US treasury that you guys buy its thoughts its around 3-4% per annum for 30 yrs paper

 

[lem34]

Lol 36% per annum on US treasury that you guys buy its thoughts its around 3-4% per annum for 30 yrs paper

What do you suggest they buy Indian currency lol

 

[SamranAli]

india runs a massive current account deficit.
net capital outflow, more capital is leaving the country than coming in.
investors are less willing to hold the indian rupee and its value is plunging.

as all debt based conumption economies face a crisis like this, especially if your currency is not a reserve currency.
running current accunt and budget deficits to spend money to import goods you dont produce, will lead to loss of confidence in your currency.

india is running an economic ponzi scheme based on debt and its coming home to roost.

well agree with you. Their economy wont change just by claiming what its not. They should learn from China.

 

[timetravel]

Gullible is when you pay the world's highest price for gas relative to income so Mukesh can live above you like a God.

yes I agree like billion + chinese.. stay happy US pays 37% interest to Chinese per annum... infact billion chinese should feel happy in future this is going to go up to 50 or 60% as per one study...

 

[Contract Killer]

I can see, lots of Export orders coming in.

 

[conworldus]

I can see, lots of Export orders coming in.

You won't see that, sadly.

1. India lacks the infrastructure for logistical operation.
2. India lacks the manufacturing capability.
3. The drop of rupee value is because of capital flight. Less investment = less manufacturing.

Good luck if you believe otherwise, or you can just cry "corrupt politicians" like Indians always do.

 

[lem34]

This news really cheers me up. After all the rubbish that we hear from this incredible shining country.

Come on down Indian rupee