Gravitas: Is Indian Rupee 'Asia's worst-performing currency'?

These are challenging times for the Indian Rupee. A study claims the Rupee is set to end the year as Asia's worst-performing emerging market currency. What are the challenges? Palki Sharma tells you.

#IndianRupee #Gravitas #WION

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[shanepatrick]

The Bots will have a field day with this. Inflation is a real problem and it effects the poor more than anyone else.

[Mohitz]

When politicians are busy fighting among themselves.. educated Indians are busy boosting American economy.. not many people in the country know about enormous debt country has... unfortunately..this is bound to happen...

[wmurthy]

Please double check with your economist. Typically western countries raise interest rates when inflation rates are high. They don’t lower interest rates. That’s what Turkey has done and created a big problem for itself. So India should be raising interest rates to curb inflation and not lower it. Higher interest rates will cool the economy down and bring down inflation

[rsahoo]

Finally she is focusing news about India

[sumandasgupta]

Indian overseas investors are our own businessmen investing through offshore routes

[Sinha]

Correction: india rupees could be worst performaning currency in EM(emerging markets) Asia.

[mayurtaksande]

Correction: During inflations, RBI increases the repo rate. This results in commercial banks borrowing less money from RBI which in turns limits the flow of money in economy. Thus keeping inflation in check.

[rahulprajapati]

Take more knowledge from me on economics . When interest rate are lower than inflation rate than people get poorer and poorer (there purchasing power decrease) . Example - Bank give you 5.25% interest on FDs means in one year if you deposit 100 Rs than you will 105 after deposit tenure end . Now as inflation is 9%, mean product which cost you 100 Rs will cost 109 after 1 year . Means you can't but same product which you could buy earlier even by increase your savings (your purchasing power decreased) . When purchasing power decrease, low demand cause economic recession . So RBI want to increase interest rate but govt don't want interest rate to go up . For govt, lower interest rate is still necessary for revival of Indian economy.

Bring both story please in your news.

[l.shivaji]

Yes, less salaries and more expenses (ex: kirana & vegtbl rates high). 20yrs ago middle class people think to buy gold, now they are thinking about pulses and dal 🙏😭 becoz I m also middle class family person.

[mr.m]

India worst currency in EM(Emerging Market)... not in whole asia.... EM nation in Asia are 9 nations....and whole asia is somewhere consists of 48 countries.

[dumdumbrown]

The INR has been a basket case since the 1960s. Indian banks are staffed by the worst staff possible. In India and the UAE, bank staff treat customers with condescension and impunity. Services are third rate and bank fees are ridiculous. Banking in India and the UAE leaves scars on customers.

[Raj-ezvg]

RBI Intentionally devalues indian rupees by buying foreign exchange currencies .... to let India profit from exports... since inflation is quite low below 6% in India.

[naddirpatel]

If India opens the door to direct nri retail investors, foreign brokerages won't have such influence.

[rahuljain]

We should also consider our love for Gold and oil imports which depress our current account.
We, on our part can reduce wastage of costly imports and working towards value addition slowly.

[MrPoornakumar]

Unlike most of the leading trading countries (who owe their prosperity partly at least, to Trade), India isn't a leading Trading nation, though she has considerable Trade befitting her size of Economy.
If India pursues Trade vigorousely she can make up for the loss of her Ruppee. It was robust at the time of independence (India was then a prominent exporter of most primary commodities), but gradually tapered off. Apart from not being the top in the list of robust currencies, does this unduly bother India? Whatever it is, the cost of living in India may not be altered (adversely) because of brisk overseas trade. That seems to be the bottom line. In other words, India's PPP figures are robust.
However to boost exports, India needs to produce quality products (confirming to reputed International "standards" & that awareness is non-existent here). To add insult to injury, India has reputation of impoting non-standard or sub-standard products from abroad, just because these are very cheap (low-priced). This picture (perception) should change.

[nik]

When inflation in Pakistan then palki says Pakistan govt is responsible but for India why palki is bringing RBI. What govt of India is doing.

[firetree]

Major export of India is not industrial products, but raw materials, agricultural, such as spices, or services, call centers, rupee devalue only helps India deplete more of its natural resources such iron ore or coal, will not help India's industry. at the same time, devalue of rupee will make the cost of importing oil rise and at the same time make fuel more expensive in India and in turn make the cost of industrial products rise and then make them less competitive in the world, therefore lower its export potential, so devalue of rupee is not that good for India's export.

[saiteja]

Let's just turn blind eye on the government's role in this.

[PKAKULA]

Nice news . The more US Forex reserves the better it is for India, if India could become the Alternative for China in terms of Manufacturing and as an alternative for Supply chain then Worlds dependence on China could be counter balanced, recent announcement of 10 Billion dollar subsidies for semi conductor companies is a good move .China has over 3 trillion in Forex and India has about 640 Billion there is way long way to go for India and If India can catch up in the next 30 years with China it would be great and we could see India as the next super power.

[goldlotus]

It has been a downward spiral for INR since Modi's demonetization blunder.