The document discusses the recent depreciation of the Indian rupee against the US dollar. It notes that the rupee has fallen close to 22% against the dollar in the past year. Several factors are contributing to the rupee's decline, including a high current account deficit, lack of foreign investment, global economic uncertainties, and domestic political issues. The depreciating rupee increases costs for imports and foreign education/travel, fueling inflation. While exporters may benefit initially, a weak rupee ultimately hurts the broader economy. Policy reforms and increased foreign investment are suggested to stabilize the currency.
Falling of Indian Currency. Rise of Dollar.Aankhi Anwesha
Rupee in tears while dollar sneers. From an investors’ perspective, the movement of rupee may not matter much as only a few can figure out that unlike Sensex, the rupee going up is not positive news, but on the contrary, it actually means rupee is becoming weaker. Many wrongly think that if rupee goes up it is something good for them not realising when the Indian currency depreciates against any foreign currency it has many negative impacts from the economic point of view.
Falling of Indian Currency. Rise of Dollar.Aankhi Anwesha
Rupee in tears while dollar sneers. From an investors’ perspective, the movement of rupee may not matter much as only a few can figure out that unlike Sensex, the rupee going up is not positive news, but on the contrary, it actually means rupee is becoming weaker. Many wrongly think that if rupee goes up it is something good for them not realising when the Indian currency depreciates against any foreign currency it has many negative impacts from the economic point of view.
Rupee depreciation is a major issue in the current scenario. After the global economic crisis in 2008-2009, the Dollar has recovered due to measures taken by the US government. Unemployment, lack of projects, inflation, bulk imports and poor exports etc have led to the fall of rupee tremendously. The faulty government policies, and the political and economic instability have led to a decline in the economy of India.
Rupee depreciation is a major issue in the current scenario. After the global economic crisis in 2008-2009, the Dollar has recovered due to measures taken by the US government. Unemployment, lack of projects, inflation, bulk imports and poor exports etc have led to the fall of rupee tremendously. The faulty government policies, and the political and economic instability have led to a decline in the economy of India.
Reducing Rupee - The Great DepreciationKushalShah165
In this article I’ve laid out the timeline and a few top indicators responsible for it and described it in it’s simplest forms for everyone to understand.
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Operation “Blue Star” is the only event in the history of Independent India where the state went into war with its own people. Even after about 40 years it is not clear if it was culmination of states anger over people of the region, a political game of power or start of dictatorial chapter in the democratic setup.
The people of Punjab felt alienated from main stream due to denial of their just demands during a long democratic struggle since independence. As it happen all over the word, it led to militant struggle with great loss of lives of military, police and civilian personnel. Killing of Indira Gandhi and massacre of innocent Sikhs in Delhi and other India cities was also associated with this movement.
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Macroeconomics- Movie Location
This will be used as part of your Personal Professional Portfolio once graded.
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Prepare a presentation or a paper using research, basic comparative analysis, data organization and application of economic information. You will make an informed assessment of an economic climate outside of the United States to accomplish an entertainment industry objective.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
2. INTRODUCTION
Exchange rate
price of a country’s currency in respect to other country’s currency
Example: USD vs INR, GBP vs INR, Euro vs INR
Foreign Exchange market
a place to convert currency
authorized currency dealers
Depreciation
a decline in the rate of exchange of one country’s currency in terms
of the other’s due to market forces.
Indian currency (INR) has depreciated close to 22% in the last 1 year.
3. Rupee under attack!
From average Rs. 44 in July 2011, it is now hovering between
Rs. 60 and Rs. 61.5
5. What leads to fluctuations?
As simple as Demand and Supply
Too much dependency on imports
When Foreign investors take away the monies!
Grim global economic outlook
essentially due to the European debt crisis
PIGS!(Portugal, Italy, Greece and Spain)
Lack of firm initiative by government on issues such as
allowing FDI in retail.
Recent debacles have further rendered the Indian
market unattractive to a certain extent (2G,
Coalgate(Coal allocation scam))
Weaker Capital markets
Upbeat US jobs
Speculation that US Federal Reserve may cut back on
investments into Emerging markets
6. What is the worry?
Leads to costlier imports i.e. higher import costs
Oil imports, Capital goods, Iron and Steel, Coal,
fertilizer, pulses, edible oils
Cost of overseas study!
Leads to inflationary pressures
Increase in import prices of essential commodities
are bound to increase the prices of the final goods.
This makes it costlier for the consumers and hence
inflation might be pushed up further.
Higher borrowing costs
Foreign currency loans are cheaper due to interest
rate differentials
But exchange rate fluctuations may negate it
7. What is the bigger worry?
Increasing Fiscal Deficit!
The difference between total revenue and total
expenditure of the government.
Indication of total borrowings needed by government
8. Contd…
Increasing Fiscal Deficit!
Worsening Current Account Deficit
When a country's total imports of goods and services is greater than
the country's total export of goods and services.
Balance of Payments (Imports less Exports) worsens makes a country
a net debtor to the rest of the world.
Exchange rate risk drives away foreign investors
which in turn depreciates the local currency!
A key attraction of “higher interest rate” is lost
Credit rating agencies also downgrade India’s rating.
Sovereign rating of a country determines investment potential into the
country
Thankfully Fitch recently revised India’s outlook to stable from
negative!
Impact on Exporters
though benefit initially, also feel the pinch due to:
adverse effect on inflation
sluggish demand from western world
10. Current Account Deficit
Oil imports during April-June, 2013-14 were valued at US $ 41875.0
million which was 6.40 per cent higher than the oil imports of US $
39357.4 million in the corresponding period last year.
The trade deficit for April-June, 2013-14 was estimated at US $
50180.06 million which was higher than the deficit of US $ 42216.73
million during April-June, 2012-13.
11.
12. Adding fuel to the fire!
Economic turmoil
Slower GDP
Hardly at 5% (back to 1991s!)
Political turmoil
Central Elections next year
Do we have a stable party?
Lack of leadership
SCAMs!
nearly add up to $1.8 Trillion
13. Is India’s rupee only fluctuating?
This is 2013 comparison
Shows South African Rand, Japanese Yen have also
suffered big time recently
14. IMPACT ON FALL OF
RUPEE AGAINST
DOLLAR:INVESTMENT
POSITIVE
IMPACT
NEGATIVE
IMPACT
15. How to combat?
RBI’s role:
Using FOREX reserves (nearly $300 billion)
Easing Control norms
can increase the FII limit on investment in government and corporate
debt instruments.
can invite long term FDI debt funds e.g. infrastructure sector.
can enhance the ceiling for External Commercial Borrowings (ECB) to
allow more ECB borrowings.
Initiate key policy reforms
Rolling of Goods and Services Tax (GST), Direct Tax Code (DTC) etc. to
enable free flow of currency i.e. supply and demand coherence
Oil imports can be staggered.
Encourage and increase the flow of foreign investments into India.
Invite long term FDI in infrastructure sector.
Government can consider temporary import compression.
Gold imports should be restricted.
Export promotion
16.
17. Impact
GROCERY BILL:
High inflation has been pinching you for more than a year now. Now,
the weakening rupee has made crude oil, fertilisers, medicines and iron ore,
which India imports in large quantities, costlier. Though these items are not for
your daily consumption, they impact your finances indirectly.
FOREIGN EDUCATION :
Students who have taken loans to fund their foreign degree are also bearing the
brunt. Education loans are usually in rupees, but as students pay their expenses in
a foreign currency, the cost of education and stay has increased.
JOBS AND REMUNERATION:
Every industry which is dependent on imports will have to face an increase in
cost of production and operations. The information technology sector stands to
gain, but global recessionary conditions may set off the impact.
18. Contd…
VACATIONS:
The falling rupee is bad news for itinerant Indians and vacationers to a foreign
country. Air fares are going up due to an increase in fuel surcharge. The stay will
be costlier by at least 3-5%. Also, shopping can become expensive by 5%. Eating
out will also be costlier by the same percentage.
BUYING A CAR:
The depreciation of rupee has impacted the automobile sector in three ways. First,
input costs have risen as these companies use imported components. Second,
some companies will have to pay higher royalty to foreign parent firms. Third,
many have foreign currency loans in the form of external commercial borrowings
and foreign currency convertible bonds.
ENTERTAINMENT:
The imported paperback, your favourite pizza and the latest laptop will also
become more expensive. There is an increase in the cost of imported books as
well as the cost of sourcing them.
20. Conclusion
The widening current account deficit (CAD) and uncertain political situation in the
country may weaken the rupee further against the U.S. dollar this financial year.
With the CAD at a record high, the Indian currency will be susceptible to a sudden
reversal of flows, and, as a consequence, the recent real effective exchange rate
appreciation could worsen the underlying imbalance.
Uncertainty in Europe will make investors to look for safe investment options,
particularly the U.S. dollar. This flight of funds will result in appreciation of the U.S.
dollar against other currencies.
Conclusively, appreciation and depreciation of rupee cannot certainly be taken
as beneficial to the Indian economy in general. On one hand the rupee
appreciation will affect exporters, BPOs, etc., on the other, rupee depreciation
will affect importers. So now it depends on what the future has to reveal for,
how effectively the central bank can balance the FX rates with little impact to
the relative areas of FX usage. Can the Dollar remain king or not, is no longer
a million dollar question, but a million Rupee question!