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Charts & Analysis

Rupee Crashes to 64.20 to the US Dollar, Falls 10% Against the Pound in a Month

The Rupee is at 64.20 to the dollar, which is the weakest it has been since September 2013. Only one way, technically, to go from here: Weaker.

 

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  This might not sound great, but at least we are secularly dropping against all other currencies also:

image The UK Pound has touched Rs. 100 again, after being at Rs. 91 just as recently as April 13, 2015!

The Euro and Pound have appreciated by 8-10% in the last month, while the dollar and Yen have moved up 3%.

These are not exactly crisis levels – just slow sustained selling of Indian assets. Looks like we’re going to need a lot more money from the Softbank/Alibaba/VC types to counter this damage!

Note: IIP data will be out later today.

This news – of Indian rupee weakening – is not good for importers and for people who’ve borrowed in foreign currencies. But it is quite good for Indian exporters, and specifically, the Pharma, Textile/Garments and IT spaces.

 

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  • Kaushik says:

    My personal observation on GBP being in UK. Ppl got scared when it dropped to 92levels and they remitted almost all they could fearing further downfall. After that its zero remittance in May. I don’t know how that plays out against the exchange rate.