Rupee in free fall crossing 87
In the last 5 years:
- Nifty 50 has given 93% returns
- INR has depreciated to USD by 37%
- So dollar adjusted returns= 56%
- Adjust for GST, STT, Capital Gains etc= 47-48%
CAGR is abysmal.
Now here is the interesting part: RBI over the last 2 years -- had been selling its FOREX reserves to save INR.
Now, looks like this war is lost.
This is the 1 reason why FIIs are leaving the Indian markets. There is just not enough returns for them to stay interested more
- Nifty 50 has given 93% returns
- INR has depreciated to USD by 37%
- So dollar adjusted returns= 56%
- Adjust for GST, STT, Capital Gains etc= 47-48%
CAGR is abysmal.
Now here is the interesting part: RBI over the last 2 years -- had been selling its FOREX reserves to save INR.
Now, looks like this war is lost.
This is the 1 reason why FIIs are leaving the Indian markets. There is just not enough returns for them to stay interested more
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Hardening of rupee will make our exports uncompetitive. This will result in production and job cuts which will affect the business activity. more
Feb 16
When I was a student in USA in 1968, one $ was worth only ₹4.75. Right now Indian ₹ has not fallen as much as other currencies. It is inevitable because of interest differentials and our low labour productivity compared to other countries like Vietnam, Thailand, Indonesia, China, South Korea, Japan etc. We have a favourable trade balance of some $66 billion with US. As an investor I know, FIIs are taking their money out also because of better yield in US securities. In Feb 2025, they bought more shares than sold (about ₹9000 crores more). more
Feb 05
So far the Govt. is not ready to accept the crude truth, no safeguard measures could be initiated. Selling FC reserves to keep the currency afloat, may be the easy option but it's for the short term. Unfortunately, Govt. has no firm plan to arrest the steady fall till now but engaged in meaningless verbatim to mislead the people. The leader himself came to power making it a serious issue in election campaign but no regret or confession. more
Feb 04
The dollar has appreciated so much in the past few months which has resulted in the rupee depreciating. One solution could be to export more. India has done well to import oil from Russia in Rupee terms. If more and more countries do bilateral trade in mutual currencies, the we may be able to reduce our dependence on the dollar. The brighter side of this is that our exporters will be benefited. Perhaps we should take that also into account. All said, I find that some of our LC members appear to rejoice in making pervasively negative comments about India and its governance without suggesting possibile solutions to the problems raised. more
Feb 04
We have a way of ignoring and sidelining bright people who can transform the nation while placing our faith on mediocre persons by way of caste and connections. more
Feb 07
We know we cant export anything to US except talent...now they are deporting the illegal migrants....means less dollar transfer.....what we are importing from US or other countries in USD? Pulses?.....Arms? Or we are paying China in USD? more
Feb 04
