The Rupee’s as you know has its historic low – 58.84. Exporters see this as an opportunity to make India the world export imgespowerhouse by de-bottle-necking manufacturing infrastructure. Were as the weaker currency makes imports costlier, especially of foreign oil on which India heavily relies, and will stoke already high consumer inflation.

New Delhi is attempting to ease corporate concerns, saying it will take measures to curb the widening current account deficit as imports outpace exports.

Let’s try to explore the reason behind the free fall:

1)      Dollar Trading at 3 Year High : USD is trading at 3 year high at 84.3, US stock market are at life time high, Strength in USD indicating recovery in US economy. Housing market is recovering. Job situation is improving which makes market participants believe the US fed will be tapping the QE infinity. Continue reading

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