I don't know why media is making a huge cry over a minimal appreciation of rupee. Its a fact that more dollars are comming to india and rupee demand is rising.
Why should govt devalue the rupee which causes inflation so 40% indians will starve (media is not bothering about their life, instead much bothered about the loss to Premji,Ratan Tata and Narayan Murthy).
Think what will happen if govt devalue rupee and make 1 dollar = 60 Rupees. The salary expectation of people will increase... Which will lead to higher salary among middle class and above. They only will be able to survive in cities... Just an example in bangalore its difficult for a person with salary of 10000 Rs/Month to survive with family.
RE:Why cry this much for a rupee appreciation of 10%
by shivanand marihal on Jul 25, 2007 01:38 PM Permalink
Looks like you have not related any way with the US$, hence you feel lightly. The person who are working overseas and family back home in India, then you really feel the heat. In last six months time wrt to US$ Rs went 10% stronger, Hence your salary is lost by 10%. Now imagine if you are in this state what will be your reaction.
RE:Why cry this much for a rupee appreciation of 10%
by T D on Jul 30, 2007 02:45 AM Permalink
Look at it this way ... so far the govt was giving you a 11% bonus for sending $ to India. Now you are getting a more realistic exchange. (In fact, even in today's terms, you are getting a bonus.)
RE:Why cry this much for a rupee appreciation of 10%
by sam on Jul 25, 2007 11:21 AM Permalink
Its sad to see that most Indians are foolish by jingoistic about a strong home currency. The rupee is getting stronger not just due to the rosy picture painted about India but due to a concerted effort by the US to keep the dollar weak so that its exports can rise. This has helped US to bring its unemployment levels to all time record lows. The rupee strength is also due to currency arbitrageurs (ECB borrowers) who are borrowing in Japan & a few other countries at less than 1% & deploying those funds in our equity markets for double digit returns. They are also doubly benefited by the currency appreciation. Indians don%u2019t realize that due to rupee appreciation, exports become uncompetitive & exports will end up losing orders especially the manufacturing sectors unlike the IT sector which can shift some of its developing work overseas. When the industries in the export sector close down there will be a huge loss of jobs & the task of regaining the lost export orders is difficult. Once these corporates which rely on exports start making lower profits especially the one%u2019s in the Sensex & A group stocks, the whole India story would evaporate. The rupee rise is mainly due to a few rich industrialists who are making money by borrowing huge funds abroad through ECBs & playing in the Indian stock markets at the cost of the foolish common man who is taken for a ride by the India story spun by these rich industrialists with the help of the media.
RE:RE:Why cry this much for a rupee appreciation of 10%
by Ranjith M on Jul 25, 2007 11:29 AM Permalink
So what is tthe solution ?.. We have only two options either market decide the value of ruppe or Govt interfere and devalue it..
Both have its own problems.. If govt devalue it it will cause inflation to rise.. its will not be good for a country with huge population of poor.
RE:Why cry this much for a rupee appreciation of 10%
by Lawrence Sebastian on Jul 25, 2007 02:48 PM Permalink
Good insight into the issue. Offcourse, the US has strategically poised their currency to all economies that are linked to dollars. In this way, their exports are boosted and the nation's exports taking severe blow. India must look towards finding new markets and make efforts to reduce the dollar dependency to Euros or other stronger currencies their by reducing the single currency trade risks. Excellant reviews are presented in this discussion. It would remain just good reviews unless the Indian govt. takes strong, proactive strategies(just like the US) and stablize to a win-win situation not only for the grossly effected NRIs and BPO sectors but for the whole economy as well.
