Rupee could touch 70 per dollar

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Rupee could touch 70/dollar in a month or so, says Deutsche Bank

Source: ET

 Rupee could touch 70 against the U.S. dollar in a month or so, although some revival is expected in the currency by the end of the year, Deutsche Bank said in a report on Wednesday. 

"We continue to believe that fundamentally the rupee is undervalued and has overshot its equilibrium level substantially, but as numerous episodes of past currency crises have amply demonstrated, under a scenario of deep pessimism, currencies can overshoot substantially and remain so for a long time," economists at the bank wrote in the report. 

"India, we fear, is entering such a zone". 

The partially convertible rupee dropped to a record low of 64.13 per dollar on Tuesday and was trading at 63.38/42 on Wednesday, weaker than its close of 63.25/26.

Replies (5)

In order to come back in power, congress is trying to push food security bill, which is a bad bill. How will the congress now deal with a recession in the country? 

Manufacturing sector is poor, agriculture sector is inefficient, industries are shutting down, unemloyment is increasing, investors are pulling out of the country, inflation is becoming uncontrollable.

 

What options do we have as a middle-class people to survive this crisis? 

The Central Government should take following measures:

     1.  Privatise  the loss making Public Enterprises

      2. Cut down Government Expenditure

       3. Increase the retirement age of Govt. Employees.

       4. Attract more Foreign Investments in the sectors other than Defence Sector.

       5. Reduce the tax exemption limit  (the present limit is too high)

 

 

resistance and support lines as per techincals signals that it could go further to touch 73.14 upto february 2014as a lots of currency derivatives and future contracts will have to honoured somewhere in february 2014. Believe me government is trying a lot but its the feds in the USA which caused us the problem the interest have been dramatically eased so that all the fii as running with their investments to USA as their is cheap credit available. IF country like usa wants to revive its ecomony and our markets are interconnected with them than probably they easily can counter by saying that they are not at fault. One good thing which can happen is that if the usa becomes super economic power than rupee can gain . We should do something about the FII as they are the market drivers , why dont we use the huge surplus pension funds as a market driver rather than those FII . FII serioulsy killed the market!!!

In physics entropy always increases, so the chaos in econoics, unless some measures taken externally from the system.

Not necessary congress has to come back again. What are the other options, well not sure, possibly a more chaotic assembly reprsented by all state level parties & no national level parties having any majority.

More chaotic situation resolves the less chaotic issues.

In coming election we indian have to think wise in selecting our representitative from all the local assemblies.

Dont be predetermined whom to vote.

Dont judge the party by the candidate and vice versa.

Dont consider the election manifest, our consciousness will have our own manifest.

Dont have any undue influence on your consciousness. Use both mind & soul in your judgement.

Dont be mislead either by extremists nor perfectionists.

When there is a question of trade off or balancing issues always choose the middle way.

Discuss issues, take opinions but never disclose your decision, its unique as every vote counts.

Hopefully we shall overcome.

hi.. ASHLI ANSALAM..

 

how will the re appreciate if:

1. retirement age is increased by government

2. tax exemption limit is reduced....


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