tag:blogger.com,1999:blog-1072534379447599771.post4487201394686115786..comments2024-03-22T18:51:07.375+08:00Comments on Anand's Blog: Indian Rupee Depreciation against the US Dollar - Your Questions AnsweredAnand Vijayakumarhttp://www.blogger.com/profile/04069290912727901147noreply@blogger.comBlogger39125tag:blogger.com,1999:blog-1072534379447599771.post-18421980352363669032012-06-19T19:13:15.155+08:002012-06-19T19:13:15.155+08:00Very good points that you have mentioned. I wrote ...Very good points that you have mentioned. I wrote a similar article on this but a little bit late. Anyway I have covered some points regarding recent developments in this issue. Can you please suggest me your opinions on that http://greenxgene.blogspot.in/2012/06/reason-why-indian-rupee-value-tumbled.html<br /><br />By now the party that supported EU Bailout plan has won the election, which Rajarajan Phttps://www.blogger.com/profile/09318894846447080329noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-69006040747385937922012-05-29T10:36:33.368+08:002012-05-29T10:36:33.368+08:00I ran a simple calculation on inr vs USD inflation...I ran a simple calculation on inr vs USD inflation differential from 1999 to 2010. Assuming inr=39 was fair value then the fair value now is inr=55Ralph Rauhttps://www.blogger.com/profile/06025795105213987572noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-39253828616389485212012-05-28T12:46:08.923+08:002012-05-28T12:46:08.923+08:00To answer your questions
No. I dont think the In...To answer your questions <br /><br />No. I dont think the Indian Rupee will ever be valued more than the dollar. I wish it happen but in the next 15-20 years, No Way<br /><br />Indian economy is heavily dependent on the US Economy. So, the Indian economy too is partly rattled only. <br /><br />The value of a currency is not only dependent on the economy. There are numerous other factors like GDP,Anand Vijayakumarhttps://www.blogger.com/profile/04069290912727901147noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-35841610687648586322012-05-28T01:49:06.000+08:002012-05-28T01:49:06.000+08:00Will we ever see Indian Rupees valued more than do...Will we ever see Indian Rupees valued more than dollar. Indian economy is doing well. US Economy is rattled. Then how come their currency is more expensive and our's is delvaluating ?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-20532262482221656972012-05-24T15:05:39.722+08:002012-05-24T15:05:39.722+08:00Unfortunately, a change in government means a new ...Unfortunately, a change in government means a new election and a few thousand crores of rupees spent. Definitely it will not help boost investor confidence. However, if the RBI takes steps to improve dollar supply and if the Finance Ministry takes steps to boost investor confidence, the fall in the value of the rupee will be arrested.<br /><br />However, with rising oil prices, I am not really Anand Vijayakumarhttps://www.blogger.com/profile/04069290912727901147noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-66132593530906779442012-05-24T15:03:54.869+08:002012-05-24T15:03:54.869+08:00If more and more US Dollars are available in the m...If more and more US Dollars are available in the market for purchase, the demand for the dollar will come down correspondingly. This will definitely ease the fall of the Rupee. However, this alone cannot arrest the fall of the Rupee but it can definitely arrest the steep fall.Anand Vijayakumarhttps://www.blogger.com/profile/04069290912727901147noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-51473587931731487542012-05-24T13:59:42.318+08:002012-05-24T13:59:42.318+08:00Hi Anand,
Firstly.I would like to thank you as the...Hi Anand,<br />Firstly.I would like to thank you as the information about depreciation of Rupee against USD was really useful ad enlightening..Can u please suggest what possible measures that indian govt should take to prevent further damage?As the depreciation of rupee value will directly impact prices of commodities etc on us.I think change in Govt can boost investor confidence.<br />Awaiting samhttps://www.blogger.com/profile/12597971188868331089noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-35534424148147754572012-05-24T13:47:52.764+08:002012-05-24T13:47:52.764+08:00Hi Anand
How does converting foreign currency earn...Hi Anand<br />How does converting foreign currency earnings into ruppee help in appreciating it?R Bnoreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-36966748619377329392012-05-24T13:26:29.840+08:002012-05-24T13:26:29.840+08:00Hi Anand
How does conversion of foreign currency e...Hi Anand<br />How does conversion of foreign currency earnings into ruppee help in controlling ruppee fall?R Bnoreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-11619624508432278762012-05-23T23:24:32.788+08:002012-05-23T23:24:32.788+08:00Hi Greg,
To begin with, I am not blaming Europ...Hi Greg, <br /> To begin with, I am not blaming Europe or the US for this situation. It is just an analysis of what is causing the value of the Indian currency to plummet downwards. The United States is not the reason for the decline in value of the rupee but economic uncertainty in USA is causing panic everywhere else. Do you agree? <br /><br />Foreign Investors (Esp from USA) form a huge Anand Vijayakumarhttps://www.blogger.com/profile/04069290912727901147noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-35615690578444250582012-05-21T19:43:10.170+08:002012-05-21T19:43:10.170+08:00There is something completely missing here - India...There is something completely missing here - Indian domestic policy. <br /><br />You state that "Due to Risk Aversion on the part of Currency Investors, the Demand for the US Dollar has gone up world over"<br /><br />So investors perceive that the US is a better investment. As an American, I can tell you there is quite a bit of fear in America because of our current government's Greghttps://www.blogger.com/profile/07817983218453343421noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-27580267599250035642012-05-18T00:42:22.698+08:002012-05-18T00:42:22.698+08:00Hi Anand,
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Thank you for the response. I do agree...Hi Anand,<br />.<br />Thank you for the response. I do agree with most of your perspectives & I look forward to what you think about Keynesian Economics vis-a-vis Austrian School (& the likes of Ludwig von Mises, F. A. Hayek, etc) - whenever you get a chance to post your views on these topics.<br />.<br />I think Q-E 1 & Q-E 2 (Quantitative Easing) played an enormous role in the MNhttps://www.blogger.com/profile/06902195593897651215noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-5836530361632286042012-05-17T21:34:27.625+08:002012-05-17T21:34:27.625+08:00Hi MN,
Anything and Everything that affects the...Hi MN,<br /> Anything and Everything that affects the Supply or Demand of the US Dollar will affect the value of both currencies. US Elections or policies laid down by the Federal Reserve may bring uncertainty in the US Economy which might further increase demand for the USD and affect the value of the Rupee. <br /><br />A good 10% or so blame on this downfall could be placed on the RBI. Not Anand Vijayakumarhttps://www.blogger.com/profile/04069290912727901147noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-55131766596897775152012-05-17T07:35:03.706+08:002012-05-17T07:35:03.706+08:00It's been many months since you posted this - ...It's been many months since you posted this - but it does seem very applicable to today's scenario (May 2012).<br />.<br />You want to shed some light on the M2, M3 money supplies & the roles those items play in the currency-world. US Presidential Elections are around the corner (few more months) and the campaigning & the debates have heaped flak on the Federal Reserve. What MNhttps://www.blogger.com/profile/06902195593897651215noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-32376411545593393332012-05-15T20:38:36.667+08:002012-05-15T20:38:36.667+08:00Hi Tanvi,
It is a simple matter of supply and d...Hi Tanvi,<br /> It is a simple matter of supply and demand. When something is available in abundance its price is always lower when compared to something that is much elusive. In this case this hike in value of the USD is partially due to the high demand and low supply. So, if people start selling the USD, the supply will ease the price going down. <br /><br />But, selling too much USD may haveAnand Vijayakumarhttps://www.blogger.com/profile/04069290912727901147noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-91320360963433630842012-05-12T23:25:21.992+08:002012-05-12T23:25:21.992+08:00I understood most of the article but I do have one...I understood most of the article but I do have one question<br />If RBI does sell USD, won't the Foreign Exchange Reserves be affected?<br />And couldn't it have an opposite effect to the one intended?<br /><br />Thank You,<br />Tanvitanvi binanihttps://www.blogger.com/profile/13684631914730209453noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-81745684621639862702012-05-10T22:01:14.877+08:002012-05-10T22:01:14.877+08:00Hi,
Answers to your Q's.
1. The more the U...Hi,<br /> Answers to your Q's. <br />1. The more the US Dollar supply in the market, lower its value. As of now everyone is trying to accumulate the USD so the demand is more and supply is less. As a result its value is high<br />2. No. The global economic scenario is the main cause. However, the RBI is partially to blame because they are not taking any stern steps to control the decline ofAnand Vijayakumarhttps://www.blogger.com/profile/04069290912727901147noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-44496726726147372492012-05-10T21:57:53.895+08:002012-05-10T21:57:53.895+08:00I am a class XI commerce student, and I understood...I am a class XI commerce student, and I understood most of the article. However, some parts I did not understand:<br />1. How could RBI selling US dollars help the INR?<br />2. Can RBI be blamed for the low value of INR?<br />3. How exactly is Risk Aversion related to the depreciating value of INR, and what determines the Risk Aversion?<br /><br />MeenalAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-35029547199169533312012-04-29T22:31:52.548+08:002012-04-29T22:31:52.548+08:00Really great post...answers most of my questions.
...Really great post...answers most of my questions.<br />But I have a request if you could explain the effects of depreciating value of indian rupee in some more detail.<br />I have already read your previous post- Is the Indian Currency Rupee Depreciation against the US Dollar Good or Bad?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-45502786738602640622012-04-08T10:19:47.484+08:002012-04-08T10:19:47.484+08:00@ Prabh
Check out the previous post. Is the India...@ Prabh<br /><br />Check out the previous post. <a href="http://anandvijayakumar.blogspot.com/2011/11/is-indian-currency-rupee-depreciation.html" rel="nofollow">Is the Indian Currency Rupee Depreciation against the US Dollar Good or Bad?</a>Anand Vijayakumarhttps://www.blogger.com/profile/04069290912727901147noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-28220831323039995762012-04-08T10:19:47.118+08:002012-04-08T10:19:47.118+08:00@ Prabh
Check out the previous post. Is the India...@ Prabh<br /><br />Check out the previous post. <a href="http://anandvijayakumar.blogspot.com/2011/11/is-indian-currency-rupee-depreciation.html" rel="nofollow">Is the Indian Currency Rupee Depreciation against the US Dollar Good or Bad?</a>Anand Vijayakumarhttps://www.blogger.com/profile/04069290912727901147noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-61078922936481513132012-04-06T23:05:55.572+08:002012-04-06T23:05:55.572+08:00Hi Anand,
How are you doing? Well, it might sound...Hi Anand,<br /><br />How are you doing? Well, it might sound a dumb question but how will rupee value go down in accordance with dollar meaning($1 goes less than 50 rupees and keeps decreasing)? Could you highlight some strategies by which this can happen? Is there any way to measure the fall of rupee value?<br />For example-maybe giving more rupees to US banks and taking dollars or exchanging prabhhttps://www.blogger.com/profile/01939994513595385221noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-3103575219508680032012-04-06T23:05:32.388+08:002012-04-06T23:05:32.388+08:00Hi Anand,
How are you doing? Well, it might sound...Hi Anand,<br /><br />How are you doing? Well, it might sound a dumb question but how will rupee value go down in accordance with dollar meaning($1 goes less than 50 rupees and keeps decreasing)? Could you highlight some strategies by which this can happen? Is there any way to measure the fall of rupee value?<br />For example-maybe giving more rupees to US banks and taking dollars or exchanging prabhhttps://www.blogger.com/profile/01939994513595385221noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-41052417679828050892012-01-04T14:16:45.230+08:002012-01-04T14:16:45.230+08:00@ Kunal
It is not so easy to figure out the impac...@ Kunal<br /><br />It is not so easy to figure out the impact of selling an x amount of US dollars. However, RBI selling that many dollars may help the rupee cut some losses and appreciate against the dollar (Under the assumption that all other factors remain the same)<br /><br />AnandAnand Vijayakumarhttps://www.blogger.com/profile/04069290912727901147noreply@blogger.comtag:blogger.com,1999:blog-1072534379447599771.post-73163456485480602942012-01-04T04:44:38.117+08:002012-01-04T04:44:38.117+08:00What will be the consequences, if RBI sells aprox....What will be the consequences, if RBI sells aprox. 80 billions? how it will help in this scenario?kunalhttps://www.blogger.com/profile/10753098817555837167noreply@blogger.com