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Indian rupee expected to depreciate further |
Posted Date: 16 May 2012 Posted By:: Chitra  Member Level: Gold Member Rank: 76 Points: 4
Responses:
5
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Indian rupee is forecasted to depreciate further. This will increase the price of stuffs in India. Eventhough it is a slightly happy news for Indians residing outside India, people in India will be badly affected.
"The rupee will continue to be under pressure due to India's large current account deficit, Eurozone's escalating sovereign debt crisis and outflow of dollars from its stock markets," - came in one of the news papers.
Do you have a say in this?
Regards
Chitra
"Do not give up, things might not favour you always"
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Responses
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#317336 Author:  Kranthi Kumar (K K) Member Level: Gold Member Rank: 98 Date: 17/May/2012 Rating:  Points: 3 |
Uncertainity in Greece, all the currencies across Europe and Asia are impacting with it. Rupee may futher weaken as well if the same continues. But the currency traders would be benefitting the large from the volatility or fall of currencies across the world. RBI and Government should intervene from time to time and necessary to take some key decisions to uplift the rupee.
Yours,
K K
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| #317363 Author: leeza Member Level: Bronze Member Rank: 0 Date: 17/May/2012 Rating: Points: 1 |
I have no much knowledge about this one so it will really be great information for me..
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#317378 Author:  Aparna Shankarraman Member Level: Gold Member Rank: 55 Date: 17/May/2012 Rating: Points: 5 |
A currency depreciates due to three reasons-
Interest rate difference
Inflation rate difference
Income difference.
Whichever country has better rates wil have a stronger hold on the other currency. All these factors are summarized under the term 'Balance of payments'. This term determines the ratio of exports as compared to imports of a country and is a comparison of the differential amount between the value of dollars exported and value of dollars imported. Whenever Imports exceed exports in a country, there will be a negative balance of payment as outflow of dollar value if more as compared to inflow. This is also considered as an indicator of financial and economic stability of a country. When the rupee depreciates in a spiraling way, panic wave hits and the affected exporters try to make up the losses by increasing the prices at home. The political stability and Government policies are also other indicators of price rise other than rupee depreciation. Thus, price rise is an effect of various factors and rupee value is just one of the factors contributing to it.
Regards
Aparna Shankarraman
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#317467 Author:  K Mohan Member Level: Platinum Member Rank: 4 Date: 17/May/2012 Rating: Points: 3 |
Indian rupee depreciation against the other currencies is the matter of worry for the people in general as it is going to have worst effect on cost factors in future. Though it is temporary phenomenon, the cascading effect of it will be more. The country which can withstand its currency demand is considered the leader here but even US dollar is having a beating here. I think the situation will change soon.
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