Non Resident Indian Business Forum

Posts 1-8 of 8

Amarendra Dhiraj Group moderator
The company name is only visible to registered members.

What the strong rupee can do?
The immediate concern for many Indians is the intensification of the rupee vis-à-vis the US dollar this year, by more than 10 per cent since January with the dollar dipping below Rs 40, a psychological benchmark.

# We have already heard about exporters cribbing that the strong currency is eroding their competitiveness, and threatening jobs.

# Even the booming software and business process outsourcing (BPO) industries are worried, though their competitiveness is not really threatened.

# ust imagine the horrible prospect of special economic zones (SEZs) sprouting across the country to boost exports, while global capital inflows continue in a high-growth Indian economy.

# Fact is that exports have become tougher while imports have become cheaper.

# Foreign fund managers now think it will be cheaper to repatriate money from India if the rupee becomes stronger.

# This could bring in more foreign exchange into the country, and make the talk of a stronger rupee a self-fulling prophesy.

# Europe is worried about the Chinese yuan.

# They complain that the Chinese yuan is being engineered marginally higher against the dollar in reply to US demands, but is going in the opposite direction versus the euro, thereby penalising Europe unfairly.

========================================================

I also ask simple questions: Is the yuan penalizing Indian exporters and domestic industries as well?

What is future for rupee?

Is this the perfect time for exchanging foreign currency in rupee?

How BSE will react over due course of time?
This post was modified on 05 Oct 2007 at 10:03 am.
- 05 Oct 2007, 10:02 am
Amarendra Dhiraj wrote: > The immediate concern for many Indians is the intensification of the > rupee vis-à-vis the US dollar this year, by more than 10 per cent > since January with the dollar dipping below Rs 40, a psychological > benchmark. > > # We have already heard about exporters cribbing that the strong > currency is eroding their competitiveness, and threatening jobs. > > # Even the booming software and business process outsourcing (BPO) > industries are worried, though their competitiveness is not really > threatened. > > # ust imagine the horrible prospect of special economic zones (SEZs) > sprouting across the country to boost exports, while global capital > inflows continue in a high-growth Indian economy. > > # Fact is that exports have become tougher while imports have become > cheaper. > > # Foreign fund managers now think it will be cheaper to repatriate > money from India if the rupee becomes stronger. > > # This could bring in more foreign exchange into the country, and > make the talk of a stronger rupee a self-fulling prophesy. > > # Europe is worried about the Chinese yuan. > > # They complain that the Chinese yuan is being engineered marginally > higher against the dollar in reply to US demands, but is going in the > opposite direction versus the euro, thereby penalising Europe > unfairly. > > ======================================================== > > I also ask simple questions: Is the yuan penalizing Indian exporters > and domestic industries as well? > > What is future for rupee? > > Is this the perfect time for exchanging foreign currency in rupee? > > How BSE will react over due course of time?
Ashant Chalasani Premium Member Group moderator
The company name is only visible to registered members.

Re: What the strong rupee can do?
In addition to the above questions, I might also add 1 more...

Does the current trend point toward a near or intermediate future when the INR will be fully convertible?

Thanks
Ashant Chalasani
- 05 Oct 2007, 3:01 pm
Ashant Chalasani wrote: > In addition to the above questions, I might also add 1 more... > > Does the current trend point toward a near or intermediate future > when the INR will be fully convertible? > > Thanks > Ashant Chalasani
Amarendra Dhiraj Group moderator
The company name is only visible to registered members.

Re^2: What the strong rupee can do?
With US Federal Reserve cutting interest rates amid concerns over slowdown in the world's largest economy, the FIIs are finding Indian stock markets quite attractive. Their net investments in local bourses stood at Rs 19,625.3 crore in September.

The strong rupee brings good news for imported products like electronics and for people traveling abroad.But the IT sector and exports have been bearing the brunt.

What is the future of Rupee? Is Dollar going to appreciate?
- 05 Oct 2007, 3:41 pm
Amarendra Dhiraj wrote: > With US Federal Reserve cutting interest rates amid concerns over > slowdown in the world's largest economy, the FIIs are finding Indian > stock markets quite attractive. Their net investments in local > bourses stood at Rs 19,625.3 crore in September. > > The strong rupee brings good news for imported products like > electronics and for people traveling abroad.But the IT sector and > exports have been bearing the brunt. > > What is the future of Rupee? Is Dollar going to appreciate?
Ankit Chaturvedi
The company name is only visible to registered members.

Re^3: What the strong rupee can do?
It will help Indian students to finance their studies abroad.
- 05 Oct 2007, 3:45 pm
Ankit Chaturvedi wrote: > It will help Indian students to finance their studies abroad.
Ashant Chalasani Premium Member Group moderator
The company name is only visible to registered members.

Re^3: What the strong rupee can do?
Not an expert at "forex-engineering" and macro-economics, but I think looking at the trend of past 10 years, the course is conclusively toward a strong INR. I guess one could debate about timing, as to when the INR will reach a certain level against the USD - and my take on that would be stable Rs. 39 to $ 1 by end of this year.

Pros & Cons? IT/ITES and other export sectors will suffer from lower margins, and hopefully they are able to live with it, and moreover find ways to off-set the marginal loss in currency appreciation.

Over the long run, I'm excited about the prospects the strong Rupee opens for overseas aquisitions for Indian global players. IMHO, the average Indian business-man has a very global mind - profit without boundries. So this should help a lot of large-caps as also SME's do more outside India with their money.

My 2 paisa!

Thanks
Ashant
This post was modified on 05 Oct 2007 at 04:10 pm.
- 05 Oct 2007, 4:09 pm
Ashant Chalasani wrote: > Not an expert at "forex-engineering" and macro-economics, but I think > looking at the trend of past 10 years, the course is conclusively > toward a strong INR. I guess one could debate about timing, as to > when the INR will reach a certain level against the USD - and my take > on that would be stable Rs. 39 to $ 1 by end of this year. > > Pros & Cons? IT/ITES and other export sectors will suffer from lower > margins, and hopefully they are able to live with it, and moreover > find ways to off-set the marginal loss in currency appreciation. > > Over the long run, I'm excited about the prospects the strong Rupee > opens for overseas aquisitions for Indian global players. IMHO, the > average Indian business-man has a very global mind - profit without > boundries. So this should help a lot of large-caps as also SME's do > more outside India with their money. > > My 2 paisa! > > Thanks > Ashant
Amarendra Dhiraj Group moderator
The company name is only visible to registered members.

Re^4: What the strong rupee can do?
Thank you Ashant for for pointing overseas acquisitions benefits. Yes indeed this scenario will encourage overseas acquisitions.

For exporters, i must say they should hedge currency risks and cut transaction costs to remain competitive in the wake of rupee hardening against the dollar. A strong rupee is good for the economy as imports would be cheaper.
- 05 Oct 2007, 4:40 pm
Amarendra Dhiraj wrote: > Thank you Ashant for for pointing overseas acquisitions benefits. Yes > indeed this scenario will encourage overseas acquisitions. > > For exporters, i must say they should hedge currency risks and cut > transaction costs to remain competitive in the wake of rupee > hardening against the dollar. A strong rupee is good for the economy > as imports would be cheaper.
Syed abdul Munim
The company name is only visible to registered members.

Re^5: What the strong rupee can do?
thank you for the question,sinceirely i am an importer from gulf as from india they are quoting their prices in dollars,we are not affected much,because the country of origin is pegged with dollars say about 60%,but while we buy inr.we get really affected,do you have any suggestion for this,i think indian economy is pegged with sterling,as i am worried about the economy of india,how indians will be affected a lot may be, lay man has to face the inflation.
- 07 Oct 2007, 10:04 pm
Syed abdul Munim wrote: > thank you for the question,sinceirely i am an importer from gulf as > from india they are quoting their prices in dollars,we are not > affected much,because the country of origin is pegged with dollars > say about 60%,but while we buy inr.we get really affected,do you have > any suggestion for this,i think indian economy is pegged with > sterling,as i am worried about the economy of india,how indians will > be affected a lot may be, lay man has to face the inflation.
Amarendra Dhiraj Group moderator
The company name is only visible to registered members.

Re^6: What the strong rupee can do?
It might help you to understand Indian Government initiative towards this issue.

http://www.hindu.com/2007/10/07/stories/2007100754891500.htm
&
http://economictimes.indiatimes.com/Govt_lines_up_sops_for_e...
&
http://www.thehindubusinessline.com/2007/10/07/stories/20071...
- 07 Oct 2007, 10:27 pm
Amarendra Dhiraj wrote: > It might help you to understand Indian Government initiative towards > this issue. > > http://www.hindu.com/2007/10/07/stories/2007100754891500.htm > & > http://economictimes.indiatimes.com/Govt_lines_up_sops_for_exporters/articleshow/2435767.cms > & > http://www.thehindubusinessline.com/2007/10/07/stories/2007100751550300.htm