The india rupee is hits three month lowThe indian currency declined nearly 1% to 63.15 Rs yesterday. It has been on a three month. Despite india's recovering economy this deluge was unexpected. The sudden avalanche was due to the stimulus provided to the Chinese economy and the China's monetary policy easing. The stimulus increased the demand for Yuan resulting in decline in rupee.
The stock market has also tanked but this will not last long as the domestic market will stabilise due to expeditious growth in indian economy.
No wonder these things will happen but how many of you believe that india will be able to enhance economic growth and maintain for more than a decade?
P.S- Intimidating question though
Though the market will stabilise do you think that so many stimulus packages like the one initiated in the European market, arbitrary floating by american market. Can Indian economy handle so much stress. Also it is sad that indian currency is inherently weak. What can you say about that?
ReplyDeleteTalking about the inherently weak premonition. It is absolutely wrong, everyone knows that in the 18th century india's gdp accounted for 1/4 of the world. Thought that time has passed by . But still you can't deny the claim that indian currency is weak. The stimulus economy's are receiving will affect the domestic indian markets for a short period of time. The effect will not last that long as the stimulus package will dilute in the country's economy. Also the pacing indian growth will neutralise the effect.
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