A community of people who love to write
The easiest domain name (Note the .ORG) - Absolutely Free!
Home | Submit Articles | Login
Weakening Indian Rupee, impacts of currency devaluation in India.BY: money | Category: Business and Finance | Post Date: 2008-09-25
Why is Indian rupee weakening?
This is a very important question in this current scenario. Not even Indian currency, all the Asian currencies are going down. They have started to doubt their strength.
What is the reason behind this? This is like a very talked about question. If, we try to find, we can easily find lots of reasons will come out.
If we compare the rupee with dollar it has come down at their 2 year low. The declining rupee is affecting the economy. Indian companies are losing huge chunks money. Many companies have recorded mark to market losses running on their foreign currency liabilities.
Indian reserve bank of India has started to sell dollars but it is not making any difference. Demand of dollar is so high that it is not easy to control their appreciation. Oil companies have to make their payment in dollars. They are making huge demand of dollar.
Leave this all these things; Reserve / central bank has no command over declining prices of rupee. The rupees saw their biggest fall in a decade on 16th September. It reached around 47 levels. It was the biggest single day fall in a decade.
The impact of weakening rupee share market is also in turbulence. Investors have started to think on strength of the economy.
When this weakness will come to an end, it is not very clear. But this is not an indication of a strong economy. People are in hope that it will take some time to be settled down.
If we will see the reality of whole economy, then we can understand the problem. The kind of volatility is being seen everywhere, means recession has come.
Article Source: http://www.saching.com
About Author / Additional Info:
* YOGA Health Benefits: Prevent diseases, Reduce Stress and Healthy Life
* Caged Creatures for Kids. Animals that you can keep at home in a cage.
* Indian Premier League and controversies of IPL
* All you need to know about blood groups and blood types
* How to easily select a best malpractice attorney who can help you.
Does this article violate or infringe on your copyright ?
It is a violation of our terms for authors to submit content which they did not write and claim it as their own. If this article infringes on your copyrights, then use our Contact us form with the detailed proof of infringement along with the offending article's title, URL and writer name. If you do not hear back from us then contact us again in another 10 days. Thank you.
Comments on this article: (1 comments so far)
* Additional comments are now closed for this article *
Article Views: 10640
Copyright © 2010 saching.com - Do not copy articles from this website.
Important Disclaimer: All articles on this website are for general information only and is not a professional or experts advice. We do not own any responsibility for correctness or authenticity of the information presented in this article, or any loss or injury resulting from it. We do not endorse these articles, we are neither affiliated with the authors of these articles nor responsible for their content. Please see our disclaimer section for complete terms.