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Indian Rupee hits new low, breaches 70-mark for first time against US dollar [Update Post #316]

Don't hate N_H, he is simply too much fun, don't be discouraged, believe me you will find him helpful 1.) if you want to relieve stress, 2.) when you have nothing to do.
 
So now that the laughable theory of India influencing the Gold market with its Mickey mouse crap has been debunked we've moved on to the rise in the price of Gold bullion in multiple currencies.

Sometimes I wonder whether people are born stupid or pretend to be stupid. :facepalm:
 
Currency is not the only indicator, of wellness of economy.
From the link given on import bill(thanks Senman):
I see Petroleum is nearly 1/3rd and gold is more than 10%.
If all the subsidies are removed on oil, rupee will easily zoom to 40s level. But some subsidies are required to help the economy grow, i think.
But gold import should be discouraged,(its simply taking out money from the economic cycle) very sad fact when import duty on Gold was rolled back this year.
 
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anakin said:
Currency is not the only indicator, of wellness of economy.
From the link given on import bill(thanks Senman):
I see Petroleum is nearly 1/3rd and gold is more than 10%.
If all the subsidies are removed on oil, rupee will easily zoom to 40s level. But some subsidies are required to help the economy grow, i think.
But gold import should be discouraged,(its simply taking out money from the economic cycle) very sad fact when import duty on Gold was rolled back this year.
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Subsidies on oil is all hocus-pocus. Taxes (both state and central) make up 50% of the amount we customer pay. Every time govt raises prices, the tax component too increases.

Besides the subsidies are totally misdirected and do not reach intended target. Diesel is the fuel of choice for middle and upper-middle class as they shift to diesel-powered cars. One of the the main uses of Kerosene is to adulterate Diesel. And LPG cylinders are also used by commercial establishments which drives up the subsidy bill.

Import duty wouldnt have worked. Would have simply created black market and helped the smugglers get rich.
 
Arcturus said:
Subsidies on oil is all hocus-pocus. Taxes (both state and central) make up 50% of the amount we customer pay. Every time govt raises prices, the tax component too increases.

Besides the subsidies are totally misdirected and do not reach intended target. Diesel is the fuel of choice for middle and upper-middle class as they shift to diesel-powered cars. One of the the main uses of Kerosene is to adulterate Diesel. And LPG cylinders are also used by commercial establishments which drives up the subsidy bill.
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Taxes are there all over the world on fuels and must stay to deter people from consuming huge amounts of fuels. Why does a guy with 5k salary need a pulsar to go to work, and then crib about high fuel prices?

Diesel vehicles are unnecessarily blamed for high consumption. they make up only around 5% of total diesel consumed. Diesel is vital for economy. Best would be to have an extra duty on diesel passenger vehicle to reduce their usage. ( Though it will directly affect my job).
Anand Mahindra, said that rather remove subsidy on diesel than duty on diesel cars. Because that would hurt our sales.
Arcturus said:
And LPG cylinders are also used by commercial establishments which drives up the subsidy bill.
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There is hardly any subsidy on LPG for commercial use.
Arcturus said:
Import duty wouldnt have worked. Would have simply created black market and helped the smugglers get rich.
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The hike was bare minimum from current 2% to 4%, not like the times of double digit duties in previous decades. Also, atleast the normal man would have reduced his over dumping into Gold.
 
"Currency is not the only indicator, of wellness of economy."

:))) :))) :)))

I bet the Zimbabweans, Russians, Maxicans, Wiemar Germans, and now the Europeans, will agree!
 
hehe....... interactive "India TV" :P
no understanding of cause and effect aspect of economics!! (comparing hyperinflation to current scenario LOL)
Japanese and Chinese must be the dumbest people on earth for trying to devalue their currency.
Isn't it?
 
MattyB said:
It is this boom that will hopefully reduce the amount of people in poverty in India. There was huge amounts of poverty in the UK at the start of the Industrial Revolution. Initially it was only the factory owners who got richer however this wealth slowly tickled down over the years improving the standards of living of the average person.
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The British invested in infrastructure during (and after) the Industrial revolution - namely the railroads. India is spending its phantom wealth on developing and expanding its military with token investments in education and infrastructure.

The result is 900 Million have mobile phones in India while 650 Million are without a toilet. Priorities much?

Until the basics are not addressed no nation can ever flourish economically.


MattyB said:
Poverty is never going to be eliminated overnight but standards of living will improve as India gets wealthier.
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It's dead easy to reduce the poverty levels, lower the threshold of poverty and bingo suddenly Millions live above the poverty line thus are not considered poor. How do you think the Indian Government are concealing the truth – by fudging the numbers. Take a look at the Indian Census process. Millions are visited by government officials who fill the Census forms for Millions of Indian civilians who cannot read nor write then have the gall to claim levels of education are on the rise in India.

Indians boast about the population of India and how the population will fuel a booming market, when the reality it is the sheer size of the India population which is hindering economic growth and ultimately devaluing the INR to toilet paper – sadly even this toilet paper has a slim chance of being used in a toilet - the irony.

The blatant truth is India epitomises the phrase 'Rat Race'.
 
Fire Bird said:
Im here mainly for the cricket forum which is IMO the best of the lot. You still havent answered my question. :)
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LOL, hilarious, you have dozens of Indians here,obsessed with a Pakistani forum and you have the nerve to ask this?
 
^^

Why its a valid question? He just asked why N_H being indophobic? which can't be asked in Pakistan forums?
 
^ Can you read? He asked why is NH obsessed with everything Indian, the irony of all you Indians having thousands of posts on a PAKISTANI forum was obviously lost on him (and you)
 
Pakpak said:
^ Can you read? He asked why is NH obsessed with everything Indian, the irony of all you Indians having thousands of posts on a PAKISTANI forum was obviously lost on him (and you)
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I think obsession with your neighbour is no problem. But to see everything that happens in your neighbourhood as -ve, is certainly unhealthy.

As for the Indians on this forum, it should be a matter of pride for PP admins, that people from across the border find it a decent place to discuss their opinions.
 
Oh it should be, but its a Pakistani forum and if there are threads made he has every right to debate it.

An Indian can't go on a Pakistani forum, have thousands of posts and then calls a Pakistani obsessed, its absurd.
 
^^

Isn't this a public forum? open to all nationalities? still don't know how the question is irrelevant? considering N_H's past posts. Anyway don't want to get in to lengthy debates on non-issues, if you think Indians here offend your sentiments, I apologize. See ya
 
Uff, can't you people read?

Have I said all of us shouldn't debate? NO.

I was pointing out the hilarious irony of Indians logging onto PP, having thousands of posts and then accusing a Pakistani posting on a PAKISTANI forum of being obsessed.

Not a hard concept to understand.
 
Nothing wrong with a Pakistani obsessed with India..who knows he might have origins in India..
And nothing wrong with an Indian obsessed with Pakistan..I think I am a bit like that.. Pakistan is like a sweet flower..and I am like a bee.. will go anywhere I see the word Pakistan..
 
I know there's nothing wrong with it, tell that to people who were whining about NH's alleged obsession.
 
I wasn't talking to you..anyway.. so this thread is about Indian economy going through a bad time.. hope things improve..
 
hopelessbiscuit said:
come in all brands and flavours...but since Indian economy is not going well..right now I am a limp biscuit..needing a boost just like the Indian rupee..
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Come on man!! My portfolio went up by 10% today itself,
I am in a fix whether to book profits or wait for further jump. :D
 
beats me why OP wants to use intellect now.

Google banned in UK?
 
anakin said:
What do you think? Sensex heading towards 20k or not?

I think Morgan Stanley set a target around 23k already but dunno the timeframe.
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More reforms needed otherwise it will be a slow march towards 20k. Partisan politics is our biggest bottleneck.
 
Iranians are rioting on the streets because their currency is collapsing. Hyper inflation just round the corner; prices going through the roof.

The children of today believe currency is not only indicator of an economy. If only they'd read and pay heed.

Of course as the INR declines and inflation and prices heads into orbit, Indians in their millions will be rioting on the streets - scenes which will make Weimar Germany look like a love story.
 
Namak_Halaal said:
Iranians are rioting on the streets because their currency is collapsing. Hyper inflation just round the corner; prices going through the roof.

The children of today believe currency is not only indicator of an economy. If only they'd read and pay heed.

Of course as the INR declines and inflation and prices heads into orbit, Indians in their millions will be rioting on the streets - scenes which will make Weimar Germany look like a love story.
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Isnt that true for almost every currency these days. BTW hyperinflation is very true in India. The official inflation rate is an underestimation. But the situation you are describing today will hit not only India but the whole world. Those who put their faith in currency OR GOLD will find them for what they are.....THEY ARE NOT FOOD. Starvation on a mass scale can become a very uncomfortable reality
 
Open at 51.90 today. I was short on it, so I am having fun.

God dammit,why these FIs don't understand N_h logic. Maybe it could because of presidential debates. Both leaders looked so incompetent that India shining seems good story to buy into. Pun intended.
 
Namak_Halaal said:
Iranians are rioting on the streets because their currency is collapsing. Hyper inflation just round the corner; prices going through the roof.

The children of today believe currency is not only indicator of an economy. If only they'd read and pay heed.
.
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The inhouse :quote:Economics Professor:quote: need to go for English classes.
When one say something is not the only cause, means the said entity is indeed one of the causes but there are other factors too.!! :93:

But on another hand he needs to understand the basic concepts of Hyperinflation too.
or
Does he thinks deflation in an economy means a rising economy (The Americans and Japanese might disagree over that)?
 
Fire Bird said:
Isnt that true for almost every currency these days. BTW hyperinflation is very true in India. The official inflation rate is an underestimation. But the situation you are describing today will hit not only India but the whole world. Those who put their faith in currency OR GOLD will find them for what they are.....THEY ARE NOT FOOD. Starvation on a mass scale can become a very uncomfortable reality
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Guys!! don't use fancy terms like "Hyper inflation" just because the inflation is high.
A high inflation which stays for a long period is called stagflation (can be as high as 20% even). Indian inflation is not there as of now.

Hyperinflation is an accelerating inflation figure which will be in above 50% per month and increasing.
In 1956, Phillip Cagan wrote The Monetary Dynamics of Hyperinflation, generally regarded as the first serious study of hyperinflation and its effects. In it, he defined a hyperinflationary episode as starting in the month that the monthly inflation rate exceeds 50%, and it ending when the monthly inflation rate drops below 50% and stays that way for at least a year. Economists usually follow Cagan’s description that hyperinflation occurs when the monthly inflation rate exceeds 50%.
 
Rupee weaken to 53.80 from the highs of 51.30 after panic buying by oil companies.
 
^^

congrats on posting 10,000 posts, I hope this thread contributed to it a lot. Will bump this when Rupee strengthens.
 
I guess you will not be bumping this thread anytime in your life then. :)

PS: 40 odd posts towards 10000 is hardly a contribution of note, but thanks for pointing out the milestone!
 
Namak_Halaal said:
I guess you will not be bumping this thread anytime in your life then. :)

PS: 40 odd posts towards 10000 is hardly a contribution of note, but thanks for pointing out the milestone!
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40 out of 281 ... 282 now :)

still too early to call.
Just a few announced reforms cannot change the state of the economy.
Its actual output that matters.

Will wait for the next 1.5 years.

Keynesian or Classical depends on your professor :P
 
Namak_Halaal said:
I guess you will not be bumping this thread anytime in your life then. :)

PS: 40 odd posts towards 10000 is hardly a contribution of note, but thanks for pointing out the milestone!
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don't curse me man. I want to live a long life, will bump it many times in my life don't worry.
 
anakin said:
I am surprised at how personal this thread has become!!
Just a spark over a few weeks has given voice to so many Indians and the OP has vanished :P
Rupee will continue to fluctuate in some range.
Won't be surprised by N_H's return to this thread with his thesis on economics when there is slight fall in rupee and market dips for awhile.
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WOW!! I can see the future :D
 
^^ This guy cannot read.

If he could he'd realise who bumped the thread today.

Bachara.
 
To the Indians who appear in this thread when the INR moves up in a hopeless blip - where are you?

How was INR doing today?

The differential between USD and INR has widened.

Plunge.

:)
 
To the Indians who appear in this thread when the INR moves up in a hopeless blip - where are you?

How was INR doing today?

The differential between USD and INR has widened.

Plunge.

:)
 
Namak_Halaal said:
To the Indians who appear in this thread when the INR moves up in a hopeless blip - where are you?

How was INR doing today?

The differential between USD and INR has widened.

Plunge.

:)
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LOL, every narrow slip and we reopen the thread!!

(Rupee continues in thee range of 51-55) and has been there for a year now!! Nothing drastic about it

http://in.advfn.com/p.php?pid=staticchart&s=FX^USDEUR&p=8&t=37

http://in.advfn.com/p.php?pid=staticchart&s=FX^USDINR&p=8&t=37

slight worse performace than Euro,

as again exchange rate not the only defining rate of well being of economy, its one of the parameters not "the" parameter.

Govt. bond yield values is a far more reliable parameter and easy to interpret.
 
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I have been waiting for Rs to drop a little (temporarily), as I need to transfer a relatively larger amount to India. But Rs. is kinda range bound now. :(
 
Garuda said:
I have been waiting for Rs to drop a little (temporarily), as I need to transfer a relatively larger amount to India. But Rs. is kinda range bound now. :(
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target 54, then transfer.... will most likely stick in 52-53 range,
unless Romney wins and situation in Syria and Iran becomes a problem rupess may go down to 60, but that will take all worse scenarios till May next year!
 
anakin said:
target 54, then transfer.... will most likely stick in 52-53 range,
unless Romney wins and situation in Syria and Iran becomes a problem rupess may go down to 60, but that will take all worse scenarios till May next year!
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Yah, I have a time till End of Nov. Need to take whatever best I can get during that timeframe.
 
Namak_Halaal said:
The Day of Judgement beckons India in March 2013.
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But Mr. Oracle!!!
Isn't the world ending in Dec 2012 !! :D

endofworldx.jpg
 
India's industrial production dips 0.4% in September​

_64074502_60841131.jpg

India's industrial output registered a surprise fall in September, adding to concerns about slowing growth in the country's economy.

Factory output fell 0.4% from a year earlier. Most analysts had projected a rise of 2.8%.

Manufacturing activity, which accounts for almost two-thirds of overall output, fell 1.5% from a year earlier.

The weak data has once again raised calls for policymakers to boost stimulus measures to spur growth.

"We believe this is high time for the central government to restore the investment sentiment by implementing and introducing some more policy stimulus," said Shakti Satapathy an analyst with AK Capital in Mumbai.
'Balancing act'

Like many of its regional neighbours, India's economy has also been hurt by the economic slowdown in the US and eurozone - which has hurt demand for the region's exports.

In an attempt to offset the decline in foreign sales, India has been trying to boost its domestic consumption to sustain growth.

Last month, India's central bank, the Reserve Bank of India (RBI) lowered the amount of money that banks need to keep in reserves in a bid to boost lending.

The RBI said the move would inject 175bn rupees ($3.2bn; £2bn) into the market.

However, analysts have argued that injecting cash into the markets may not be enough and that the central bank needs to cut interest rates to bring down the burden on businesses and consumers.

For its part, the RBI has said that keeping inflation in check is one of its top priorities.

But Moses Harding, head of asset-liability management at IndusInd Bank said the bank needed to do a "balancing act between growth and inflation".

""The trend in growth and inflation is clear; downward pressure on growth and uptrend on inflation into the near term," he said.

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Stimulus measures to spur growth? I wonder what such measures would entail? Ahh yes, PRINT PRINT PRINT.

PS: INR weakens further to 54.8201 on the news.

PPS: Got Gold?
 
Happy Diwali N-H. You beat me to it.

Yes, rupee getting hammered on the back poor October IIP figures. It will be range bound 50-52 around January.
 
Namak_Halaal said:
India's industrial production dips 0.4% in September​




Stimulus measures to spur growth? I wonder what such measures would entail? Ahh yes, PRINT PRINT PRINT.

PS: INR weakens further to 54.8201 on the news.

PPS: Got Gold?
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Ever head of SRL and CRR by chance?
 
India GDP Growth May Fall to 6% This Fiscal Year – Fitch

MUMBAI--Fitch Ratings Monday said that India's economic growth in the current financial year through March is likely to slip to 6% from 6.5% in the previous year.

Citing recent gross domestic product figures which point to slowing growth, Fitch said in a press release that it expects the "economic recovery to be shallow."

The house expects the economy to clock 7.0% growth in the next financial year.

Fitch said that recent economic reforms announced by India's government will need time to show results, and that their implementation will face political challenges.

The report is in contrast to one earlier in the day from Morgan Stanley MS +0.06% (MS), which raised India's growth forecast to 5.4% from its earlier estimate of 5.1%.

Government data last week showed that the Indian economy grew at 5.3% in the July-September period, down from 5.5% in the April-June quarter.

While Fitch feels the July-September number is indicative of a slowing performance, Morgan Stanley has found growth to be better than expected.

Morgan Stanley said that growth, other than in the farm sector, has bottomed out while Fitch stated that tight fiscal and monetary policy settings decrease the scope to support growth in the midst of stubbornly high inflation and a commitment to consolidating public finances.

Last week, Goldman Sachs GS -0.79% (GS) raised its outlook on Indian equities to overweight from market weight, days after Moody's MCO +0.93% maintained a stable outlook on the country's sovereign rating.
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http://online.wsj.com/article/SB10001424127887323401904578156633541364730.html
 
China is growing at 8% so India growing at 6-6.5 is what i would realistically hope.Considering India is always 1-2% behind China in growth.Still this isnt bad considering the global situation and that we have a pathetic govt at helm.
 
moumotta said:
Time to bump now that we are in March. 23 days more for the dooms day prophecy to play out.
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The INR is much stronger than last year. Why does it always happen when I have a plan to transfer a good amount ? :(
 
Garuda said:
The INR is much stronger than last year. Why does it always happen when I have a plan to transfer a good amount ? :(
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There is still hope. It can all come crashing in the next 3 weeks as predicted by Salt_Lawful.
 
Garuda said:
The INR is much stronger than last year. Why does it always happen when I have a plan to transfer a good amount ? :(
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Welll INR will remain stronger as long as dollar,euro,pound arent going down. We have to remain competetive wrt All these currencies. ALL is the key word here.
 
What ever happened to Namak_Halaal bhai?

The rupee has slumped 11 percent this year, touching a record low this week, and even this couldn't bring NH back.
 
Yeah lets see what Raghuram Rajan's going to achieve as RBI governor, we're in a real mess.
 
India gripped by mood of crisis as rupee falls again


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The Indian rupee fell to a new low against the dollar on Wednesday and stocks declined after a central bank promise to inject liquidity into the country’s financial markets provided only temporary relief from a deepening sense of crisis.

Bank shares and bond prices had jumped in the morning after the Reserve Bank of India’s latest intervention, but the euphoria quickly evaporated.

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At one point the rupee was down over 2 per cent and hit a record low of Rs64.55 to the dollar amid investor scepticism about the policies of the RBI and the Indian government. The Sensex stock index fell nearly 2 per cent to close at 17,905.91, the lowest in nearly a year.

On Tuesday night the RBI announced that it would purchase Rs80bn ($1.2bn) of long-dated government bonds and take other steps to ease pressures on Indian banks, whose valuations have been badly hit by a series of measures introduced to protect the rupee over the past month.

The latest moves partially reversed previous monetary tightening measures and led to accusations from analysts of Indian policy “flip-flops” just as the governorship of the RBI is passing from Duvvuri Subbarao to Raghuram Rajan, the former International Monetary Fund chief economist who takes over on September 5.

Indian officials and central bankers say their economy is only one of several emerging markets that are suffering from the flight of investors back towards the US, where the prospect of an end to the Federal Reserve’s ultra-easy monetary policies has made dollar assets more attractive.

“It is important to address the risks to macroeconomic stability,” the RBI said in an explanation of its latest move. “At the same time, it is also important to ensure that the liquidity tightening does not harden longer term yields sharply and adversely impact the flow of credit to the productive sectors of the economy.”

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The government and the RBI have issued a series of edicts in recent days designed to reduce the current account deficit and bolster the rupee, including increases in the import duty on gold, the end of duty exemptions for flatscreen televisions brought in by airline passengers and restrictions on outward direct investment by Indian companies and individuals.

Far from reassuring investors, however, the hotch-potch of measures has created the impression that the Indian authorities are flailing around for stopgap solutions rather than devising any long-term strategies for economic recovery.

“India’s central bank is adding to its woes by appearing to change its policy goals almost from one day to the next,” said Nicholas Spiro of London-based Spiro Sovereign Strategy, arguing that the RBI was now sending a “dangerous signal” that it did not have the stomach to defend the rupee if the flight from emerging markets worsened.

While the RBI’s aims of promoting growth and preventing rupee depreciation were inherently contradictory, he said, “credibility and predictability are precious commodities in the world of central banking – not least when a financial crisis is raging. Right now, the RBI conspicuously lacks both.”

Rajeev Malik, senior Asia-Pacific economist at brokerage CLSA, wrote in a note that “flip-flops” by Indian policy makers were continuing.

“The latest moves by the RBI are aimed at cleaning up the unintended mess in the bond market from their convoluted and ineffective currency defence,” he said. “But they still appear unsure of what [growth, rupee, bonds] they want to eventually save.”

Other analysts said the measures were likely to be at least partially successful in correcting the unintended consequences of previous tightening measures.

“They have been trying to walk a careful balance, with measures aiming to stabilise the currency, but they never really intended it to spill over to long-term yields, which have been shooting up,” says Leif Eskesen, chief economist for India at HSBC.

“And so they are now trying to ensure that they don’t do anything to hurt growth and curb credit growth ... and this should to some extent help to contain yields, although there is still a difficult backdrop.”
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http://www.ft.com/cms/s/0/af335904-0a21-11e3-aeab-00144feabdc0.html#axzz2cjCGWkjE
 
bin_pendi_ka_lota said:
Welll INR will remain stronger as long as dollar,euro,pound arent going down. We have to remain competetive wrt All these currencies. ALL is the key word here.
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In hind sight, now i think it was important to remain competitive to least performing currencey. We are surely in a mess. They should have printed money in the hay days.
 
Fyi,

Paul Krugman - New York Times Blog
August 20, 2013, 2:17 pm 90 Comments
Rupee Panic
OK, the plunging rupee is the big economics story of the day, and I’m trying to get up to speed on the issues. My immediate question, however, is why the panic?

Yes, the rupee is down a lot in a short time — along with other emerging market currencies. In fact, its fluctuations are small compared with the obvious comparator, Brazil:


Bank for International Settlements and author’s estimate
(The BIS numbers only go up through July, and I estimated the last month from the dollar-rupee rate.)

We more or less know the story here. First, advanced countries plunged into a prolonged slump, leading to very low interest rates; capital flooded into emerging markets, causing currency appreciation (or, in the case of China, real appreciation via inflation). Then markets began to realize that they had overshot, and hints of recovery in advanced countries led to a rise in long-term rates, and down we went. (I don’t think QE has much to do with it, although your mileage may vary.)

So the recent decline is sharp. But should India panic?

This would be scary if India was like the Asian crisis countries of 1997-1998 or Argentina in 2001, with large amounts of debt denominated in foreign currency. But unless I’m misreading the data, it isn’t:


Now, the depreciation of the rupee will presumably lead to a spike in inflation — but it should be temporary.

So at first examination this doesn’t look like as big a deal as some headlines are suggesting. What am I missing?
 
"Rupee" to be on par with US Dollar

In a swift move, which has taken all the world economies by surprise, RBI has restored parity of Indian Rupee with USD.

With all the RBI’s policies to defend the rupee, from raising short term interest rates by 300 basis points to imposing capital controls, coming to naught, RBI governor Dr. Subba Rao has taken the radical step of replacing the Indian rupee with the ubiquitous onion to stem the domestic currency’s slide and regain parity with the dollar. A kg of onions will now replace Rs. 100 as legal tender all over the country and more importantly fetch a dollar in the foreign exchange markets. Currency mints in Noida, Hyderabad, Mumbai and Kolkata have accordingly been converted into onion farms.

The RBI governor revealed that this solution struck him after he noticed that both the dollar and a kilogram of onion were moving in tandem towards the Rs.100 mark while he was peering over market data. “After that, the solution pretty much unraveled itself in my mind,” a teary eyed Rao told . “Anyway, with people now preferring to transact in onions rather than rupee notes, especially those carrying the signature of Dr. Manmohan Singh, the move was inevitable,” he added.

The commentariat including economists of various hues have by and large hailed the move. “This out of the box measure limits the ability of both the Union Government and the ISI to do long term damage to the economy by resorting to seigniorage (revenue from printing notes) to finance their schemes,” noted Dr. Vodoo Sen, a very famous economist.

The Finance Ministry has predictably lashed out at the RBI for this radical monetary intervention. “Where will we get the extra onions to now buy food-grains for implementing the Food Security Bill?” thundered Finance Minister Chidambaram. “Plunge a dagger into our heart but don’t take away our right to finance populist schemes by creating money out of thin air,” he wailed.

Union Rural Development Minister Jairam Ramesh was also glum on hearing about the move. “It’s back to the drawing board for us now to draw up revised guidelines for a DoT (Direct Onion Transfer) in place of a Direct Cash Transfer (DCT) program,” he remarked lugubriously. The radical monetary intervention has also poured cold water over the plans by Mylapore vaadhiyars for performing a grand sadabhishekam ceremony for the Indian rupee in anticipation of breaching the Rs 80/US Dollar mark.
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In all this depression, i am still optimistic that something good is going to happen for our future. Chaos isn't a pit, chaos is a ladder! Climb it up freaking policy makers. :moyo
 
Rupee hits new low, breaches 70-mark for first time against US dollar

NEW DELHI: The rupee on Tuesday extended its fall and breached the psychological 70-mark for the first time against the US dollar, hitting a new low of 70.10 in intra-day trading.

The currency however closed at 69.90, up 3 paise against Monday's 69.93, when it recorded its biggest intra-day fall in five years, , following a global currency crisis after the Turkish lira was battered.

On Monday, the rupee closed as the worst performing Asian as the contagion from the collapse of the Turkish lira spread to emerging markets. The rupee has been on the downslide this year, having slipped 9 per cent in 2018.

"The fall in rupee is in line with global decimated emerging markets currency, accentuated by the Turkish crisis," Sanjiv Bhasin, executive VP-Markets & corporate Affairs, India Infoline told TOI.

Reflecting upon the brighter side of the development, Bhasin noted, "(It) should be a good catalyst for exports and also makes up for over valuations of rupee versus fiscal deficit to calm the people with negative perception".

India’s currency has been among the hardest hit in Asia from the recent Turkey-led sell-off in emerging assets, thanks to a wide current account deficit (CAD) that’s already strained by higher oil prices. A weaker rupee could complicate the Reserve Bank of India’s (RBI) job of keeping inflation in check.

“RBI will not be comfortable at these levels. It was seen defending rupee at all levels,” news agency PTI had quoted a senior treasury official of a public sector bank as saying, on Monday.

In Tuesday's early trade, rupee had recovered to some extent before tumbling again.

“Broader emerging-market currency movement, dollar strength, and the trend in crude oil prices will drive the outlook for the rupee in the immediate term,” news agency Bloomberg quoted Aditi Nayar, principal economist at ICRA.

At 10.50 am, the 10-year benchmark bond yield inched up to 7.82 per cent after staying muted in early trade. The equity markets were holding up, with Sensex and Nifty gaining almost half a per cent each.

https://timesofindia.indiatimes.com...me-against-us-dollar/articleshow/65396601.cms
 
Can't have a volatile dotard like Trump making far reaching economic decisions, he's sending shocks throughout the market.

If only the rest of the world had the fortitude to go back to gold standard
 
To economy geeks, what determines the currency value provided the government isn't artificially manipulating ?
 
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