{"id":29263,"date":"2018-10-24T17:47:55","date_gmt":"2018-10-24T12:17:55","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=29263"},"modified":"2018-10-24T17:47:55","modified_gmt":"2018-10-24T12:17:55","slug":"whats-roiling-the-rupee","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/whats-roiling-the-rupee\/","title":{"rendered":"What\u2019s roiling the rupee"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/business\/markets\/whats-roiling-the-rupee\/article23943869.ece\">What\u2019s roiling the rupee<\/a><\/p>\n<p>Rupee depreciation; value of rupee<\/p>\n<p><strong>News: <\/strong><\/p>\n<ol>\n<li>Rupee now figures among the worst-performing Asian currencies. It slides over 6% against the U.S. dollar since the beginning of 2018.<\/li>\n<\/ol>\n<p><strong>Important facts:<\/strong><\/p>\n<ol start=\"2\">\n<li>In 2013, rupee slides more than 20% in 3 months from May to August, due to bond buying programme of U.S Federal Reserve. This forced RBI to take interventionist measure such as raising interest rates and curbing gold imports.<\/li>\n<li>Reasons for rupee fall in India.<\/li>\n<\/ol>\n<ul>\n<li>Persistent current account deficit (CAD)<\/li>\n<li>Rising oil prices<\/li>\n<li>Reduction in foreign investment<\/li>\n<\/ul>\n<ol start=\"5\">\n<li>Difference between situation of 2013 and 2018<\/li>\n<\/ol>\n<ul>\n<li>CAD in 2018 is forecasted 2% of GDP as compared to 4.8% of GDP in 2013. India is expected to end FY19 with CAD at about $70 billion or about 2.5% of GDP, a significant deterioration from 0.7% in FY17, but still only at half the levels seen in 2013.<\/li>\n<li>RBI has sufficient stocks of forex reserve in 2018 as compared to 2013 to meet any volatile situation.<\/li>\n<li>An oil price was $110 per barrel, as compared to $71 in May 2018.<\/li>\n<li>India attracts about double FDI inflow in 2018 as compared to 2013<\/li>\n<\/ul>\n<ol start=\"6\">\n<li>Issues in 2018<\/li>\n<\/ol>\n<ul>\n<li>Frequent elections act as a barrier<\/li>\n<li>Volatile FPI flow<\/li>\n<li>India equities trade is at stiff premium as compared to other Emerging Markets after the four-year Bull Run. This hampers the FPI inflow.<\/li>\n<li>A narrowing gap between the bond rate of US treasury and Indian gilts may prompt FPI to pull away from Indian bond market.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>What\u2019s roiling the rupee Rupee depreciation; value of rupee News: Rupee now figures among the worst-performing Asian currencies. It slides over 6% against the U.S. dollar since the beginning of 2018. Important facts: In 2013, rupee slides more than 20% in 3 months from May to August, due to bond buying programme of U.S Federal&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/whats-roiling-the-rupee\/\">Continue reading <span class=\"screen-reader-text\">What\u2019s roiling the rupee<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-29263","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704634364},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/29263","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=29263"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/29263\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=29263"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=29263"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=29263"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}