Go Back   Team-BHP > Around the Corner > Shifting gears


Reply
 
Thread Tools Search this Thread
Old 15th May 2007, 19:32   #1
BHPian
 
sbasak's Avatar
 
Join Date: Nov 2005
Location: CCU-LTN
Posts: 607
Thanked: 7 Times
Question Why Rupee always falls against $,, ???

I am not talking of daily fluctuation. I mean long term valuations.
When I was in early classes in school, $ was Rs 13, Rs 16 or so. Now it has risen to Rs 43 & Rs 80 respectively.
Who decides the exchange rates? In spite of India's economy becoming better every year, why the rate never drops??
sbasak is offline   Reply With Quote
Old 15th May 2007, 19:45   #2
Senior - BHPian
 
Join Date: Dec 2004
Location: pune
Posts: 2,088
Thanked: 48 Times
Default

Quote:
Originally Posted by sbasak View Post
I am not talking of daily fluctuation. I mean long term valuations.
When I was in early classes in school, $ was Rs 13, Rs 16 or so. Now it has risen to Rs 43 & Rs 80 respectively.
Who decides the exchange rates? In spite of India's economy becoming better every year, why the rate never drops??
Rupee is actually appreciating these days. I remember it falling down to 49 Rs./Dollar at one time. Last I heard of, it is floating close to 41.
RX135 is offline   Reply With Quote
Old 15th May 2007, 19:53   #3
Senior - BHPian
 
finneyp's Avatar
 
Join Date: Dec 2005
Location: Bangalore
Posts: 2,603
Thanked: 138 Times
Default

Yes, Indian Rupees is getting stronger now!
Euro was Rs.58 a month back, but now it is around Rs.55
finneyp is offline   Reply With Quote
Old 15th May 2007, 19:57   #4
Senior - BHPian
 
typeOnegative's Avatar
 
Join Date: Oct 2004
Location: Vikhroli, Mumbai, India
Posts: 1,502
Thanked: 20 Times
Default

Quote:
Originally Posted by sbasak View Post
Who decides the exchange rates? In spite of India's economy becoming better every year, why the rate never drops??
Exchange rates are not fixed artificially in India, unlike other countries like China, rather the rates get decided by the amount of trade, FDI, government policies etc.

The rate has been dropping esp. wrt dollar. But whether it is a desirable thing is another question.
typeOnegative is offline   Reply With Quote
Old 15th May 2007, 19:57   #5
Senior - BHPian
 
Join Date: Feb 2006
Location: BLR
Posts: 2,222
Thanked: 10 Times
Default

Who knows a good place for me to buy $$

Lol
s0uljah is offline   Reply With Quote
Old 15th May 2007, 20:02   #6
Senior - BHPian
 
lurker's Avatar
 
Join Date: Jun 2006
Location: Tura
Posts: 1,290
Thanked: 577 Times
Default

Now it is 40.88.

Days of ascendency of the dollar are fading. Nice time for you to make this thread. lol
lurker is offline   Reply With Quote
Old 15th May 2007, 20:02   #7
BHPian
 
quicksilver's Avatar
 
Join Date: Oct 2005
Location: Coimbatore
Posts: 455
Thanked: 8 Times
Default

You can get $ at any Forex dealer. But right now, you might want to buy the Re. instead as $ is not too strong these days. As we speak, it is at 40.83XXX
quicksilver is offline   Reply With Quote
Old 15th May 2007, 20:22   #8
Team-BHP Support
 
manson's Avatar
 
Join Date: Oct 2004
Location: Mumbai
Posts: 3,496
Thanked: 1,821 Times
Default

India has managed foreign exchange rate system, the exchange rate is more or less determined by the demand and supply of any currency, and in times of emergency the monetary authority reserves the right to regulate the same.

Recently, most exporters have been having a bad time due to exchange rate of inr : usd falling, this from what i know is not due to the inr strengthening, this is more because of foreign exhchange flowing into our country due to a increased exchange rates, so due to excess supply of usd, its value has fallen v/s the inr.

manson.
manson is offline   Reply With Quote
Old 15th May 2007, 20:28   #9
Senior - BHPian
 
Join Date: Mar 2005
Location: N.A
Posts: 6,819
Thanked: 1,439 Times
Default

Man here we are lamenting how few rupees we get these days and somebody has gone a posted a thread asking why does it fall!

If wishes were horses!
Steeroid is offline   Reply With Quote
Old 15th May 2007, 20:31   #10
Team-BHP Support
 
manson's Avatar
 
Join Date: Oct 2004
Location: Mumbai
Posts: 3,496
Thanked: 1,821 Times
Default

Quote:
Originally Posted by Steeroid View Post
Man here we are lamenting how few rupees we get these days and somebody has gone a posted a thread asking why does it fall!

If wishes were horses!
Ditto steer, i feel ya on this one

manson.
manson is offline   Reply With Quote
Old 15th May 2007, 20:38   #11
Senior - BHPian
 
typeOnegative's Avatar
 
Join Date: Oct 2004
Location: Vikhroli, Mumbai, India
Posts: 1,502
Thanked: 20 Times
Default

Quote:
Originally Posted by manson View Post
India has managed foreign exchange rate system
Is it true even now? Somehow I thought that the RBI is more focused on domestic monetary policy and the exchange rates get fixed based on other macro factors ....
typeOnegative is offline   Reply With Quote
Old 15th May 2007, 20:44   #12
Team-BHP Support
 
Samurai's Avatar
 
Join Date: Jan 2005
Location: B'lore-Manipal
Posts: 22,043
Thanked: 13,496 Times
Default

For our export driven economy, low rupee value against major currencies is a good thing. If rupee keeps getting stronger, all the IT/BT/ITES/Textile jobs will quickly leave our country.

Weak Rupee => Good for Export, bad for Import
Strong Rupee => Bad for Export, Good for Import

Unless we have very strong domestic market for our products, we are better off with weak rupee.
Samurai is offline   Reply With Quote
Old 15th May 2007, 20:52   #13
BHPian
 
Wimwian's Avatar
 
Join Date: Feb 2007
Location: Mumbai
Posts: 191
Thanked: 4 Times
Default

Quote:
Originally Posted by typeOnegative View Post
Is it true even now? Somehow I thought that the RBI is more focused on domestic monetary policy and the exchange rates get fixed based on other macro factors ....
It's still true to a certain extent... it's not controlled directly, but RBI controls it through forex market interventions... FDI inflows have been increasing dollar supply in the market which the RBI was sweeping up by selling rupees till about feb-march, thereby preventing the rupee from appreciating... however too much rupee supply was fueling inflation and RBI has since stopped under government pressure... which is why rupee is appreciating right now.

Last edited by Wimwian : 15th May 2007 at 20:54.
Wimwian is offline   Reply With Quote
Old 15th May 2007, 21:16   #14
BHPian
 
Join Date: Oct 2005
Location: chennai
Posts: 755
Thanked: 292 Times
Default

Quote:
Originally Posted by Samurai View Post
For our export driven economy, low rupee value against major currencies is a good thing. If rupee keeps getting stronger, all the IT/BT/ITES/Textile jobs will quickly leave our country.

Weak Rupee => Good for Export, bad for Import
Strong Rupee => Bad for Export, Good for Import

Unless we have very strong domestic market for our products, we are better off with weak rupee.

i dont see ITES jobs quickly leaving the country, a stronger ruppee means better buying power, hence salary may rise may not be as high as it is now, but with the same salary we will have a better purchasing power.

there are many other factors for ITES MNCs to setup base in India, low cost is just one of the reason.

yes, we have a strong domestic market as we are not as export dependent as countries in far east.

appreciation is good but should happen gradually, just think of the savings that we will make in just oil pool account because of the stronger ruppee..
tifosikrishna is online now   Reply With Quote
Old 15th May 2007, 22:00   #15
BHPian
 
Deepz's Avatar
 
Join Date: Jul 2006
Location: Jakarta(originally bombay)
Posts: 98
Thanked: Once
Default

the dollar has been weakining this year particularly, not just against the indian rupee but against all other currencies also..there was a very drastic move in the forex market between feb and april 2007..
Deepz is offline   Reply With Quote
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search


Similar Threads
Thread Thread Starter Forum Replies Last Post
Solo Bike Ride To Thenmala, Palaruvi Falls & Courtallam Falls voyageur Travelogues 10 28th April 2013 22:13
Why are Crash test Cars always Yellow? 929RON Technical Stuff 9 2nd April 2008 15:06
Why is it always esteems and OHCs for track events like drags!! fiery enzyme Indian Motorsport 131 3rd October 2007 08:42
Rupee Vs. Dollar why it's not effecting our car prices niv26 The Indian Car Scene 9 21st September 2007 17:43
Why does Honda always recommend unleaded fuel only? v.tec Technical Stuff 13 5th September 2006 00:48


All times are GMT +5.5. The time now is 11:15.

Copyright 2000 - 2017, Team-BHP.com
Proudly powered by E2E Networks