Rupee Asia’s only losing emerging currency, future even bleaker

[FullMoon]

https://www.hindustantimes.com/business-news/for-asia-s-only-losing-em-currency-the-future-looks-even-bleaker/story-u2uHaydeC5G1ywaZR5xaGJ.html

 

 

The rupee, which has slumped almost 5% from this year’s high in July, is also under selling pressure due to escalating levels of public debt and a credit crunch among non-bank finance companies, known as shadow banks.

 

India’s rupee is the only emerging Asian currency to weaken this quarter and its losses may gather pace as a report this week is forecast to show economic growth slid to a six-year low.

The rupee, which has slumped almost 5% from this year’s high in July, is also under selling pressure due to escalating levels of public debt and a credit crunch among non-bank finance companies, known as shadow banks. Moody’s Investors Service cut the country’s credit rating outlook to negative this month, saying the economic slowdown was deeper and longer than it anticipated.

“The biggest risk emerging for India at this juncture is growth weakness,” said Indranil Pan, chief economist at IDFC First Bank Ltd. in Mumbai. “That, along with fiscal risks, will probably cause the rupee to weaken. The poor growth conditions may lead to lower capital flows and hence could be a significant negative for the currency.”

India’s gross domestic product probably slowed to 4.6% last quarter, which would be the least since the first three months of 2013, according to the median estimate in a Bloomberg survey before the data is released Friday. State Bank of India, the country’s largest lender, predicts growth will slide to 4.2%, a record low in data starting in 2012.

 

The rupee dropped to 72.2425 per dollar earlier this month, a whisker away from a nine-month low of 72.4075 set in September. A breach of support around those levels may see it weaken toward 73.0217, the 76.4% retracement of its rally from October 2018 to July 2019, according to Fibonacci analysis. It closed at 71.715 on Friday.

The Reserve Bank of India has added to the rupee’s downdraft by cutting its benchmark repurchase rate by a combined 135 basis points starting in February. That has pushed down bond yields and sapped foreign demand for the nation’s debt.

At the same time, the RBI has boosted dollar purchases to increase rupee liquidity in the financial system, as shown by foreign-exchange reserves climbing to a record $448 billion.

 

A more pronounced growth slowdown than other regional emerging markets and one of the most aggressive rate-cutting cycles in Asia “has resulted in a major headwind for the rupee,” said Peter Chia, a strategist at United Overseas Bank Ltd. in Singapore. “The RBI’s rate cuts, almost twice the amount delivered by the Fed, have eroded the interest-rate advantage the rupee has over the dollar, denting its attractiveness as a high yielder.”

Below are the key Asian economic data and events due this week:

To contact the reporter on this story: in Mumbai at [email protected]

 

To contact the editors responsible for this story: Tan Hwee Ann at [email protected], Nicholas Reynolds, Shikhar Balwani

[kevinUsa]

80 rs eppudu avutundi ?

[FullMoon]

2 minutes ago, kevinUsa said:

80 rs eppudu avutundi ?

waiting

[xano917]

#congress_DID_IT 

[JambaKrantu]

I don't know man.. GDP slow down antaru, rupee padipoindi antaru.. Hyderabad lo maatram okkokati kotlu kotlu cheptunnaru.. Maa kokapet lo 2010 varaku acre 1 to 2C.. Ippudu acre 25C. Developed land SqYrd 80k cheptunnaru.. 8C 10C villas biscuits laaga kontunnaru left and right..  There are around 20 villa projects in and around financial district/kokapet with prices more than 5C, and they are mostly sold out..

[JohnSnow]

Just now, JambaKrantu said:

I don't know man.. GDP slow down antaru, rupee padipoindi antaru.. Hyderabad lo maatram okkokati kotlu kotlu cheptunnaru.. Maa kokapet lo 2010 varaku acre 1 to 2C.. Ippudu acres 25C. Developed land SqYrd 80k cheptunnaru.. 8C 10C villas biscuits laaga kontunnaru left and right..  There are around 20 villa projects in and around financial district with prices more than 5C, and they are mostly sold out..

Nuvvu enni villas owned baa

[JambaKrantu]

Just now, JohnSnow said:

Nuvvu enni villas owned baa

24 villas owned baa.  inka 24 repu kontunna..

[JohnSnow]

Just now, JambaKrantu said:

24 villas owned baa.  inka 24 repu kontunna..

Jacuzzi, mini home theater and pole dancing pettu baa weekends memu vastham appudappudu

[JambaKrantu]

4 minutes ago, JohnSnow said:

Jacuzzi, mini home theater and pole dancing pettu baa weekends memu vastham appudappudu

Sure baa.. Jessee_bb gaadu pole dancing and stripping chestadanta weekends extra cash kosam.. Ivanni petti vaadini pilipiddam..

[snoww]

7 minutes ago, JambaKrantu said:

I don't know man.. GDP slow down antaru, rupee padipoindi antaru.. Hyderabad lo maatram okkokati kotlu kotlu cheptunnaru.. Maa kokapet lo 2010 varaku acre 1 to 2C.. Ippudu acre 25C. Developed land SqYrd 80k cheptunnaru.. 8C 10C villas biscuits laaga kontunnaru left and right..  There are around 20 villa projects in and around financial district/kokapet with prices more than 5C, and they are mostly sold out..

Rupee paduthundi kabatte NRIs ala crazily buying.