What is the implication of a weak dollar for India ?

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  • Dear friend,

    For exports, our goods will become more costly and our exports will decline. Imports will be cheaper and hence the Indian industries may find it difficult to match the import prices for goods. Imports will incease due to lower landed costs of goods. Gold will be cheaper as also oil.
    However Rs. 35 per US dollar may not be possible. It may come to Rs. 42 to 45 per US $ levels this year end.

    ks2071746
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  • India can observe atleast $50 Billion investment in coming months through FIIs, FDI, ECBs due to stable government which has come to power and a government which is pro reform and proactively encourages public sector disinvestment and more private sector investment. This is good news for domestic investors who hold local assets like quality real estate, shares of quality companies.

    To specific question is Rs.35 per dollar possible or is this good? No clear answers and anything is possible and implications also can be anything.
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  • Originally Posted by ks2071746
    Dear friend,

    For exports, our goods will become more costly and our exports will decline. Imports will be cheaper and hence the Indian industries may find it difficult to match the import prices for goods. Imports will incease due to lower landed costs of goods. Gold will be cheaper as also oil.
    However Rs. 35 per US dollar may not be possible. It may come to Rs. 42 to 45 per US $ levels this year end.

    ks2071746


    No, though they are priced in USD Gold and oil prices won't go down. Gold will go up, but oil will go up temporarily and will fall down with demand.
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  • $700billion printed money without any trade to show for (as US currency is pegged against its trade) High borrowing by US citizens will devalue the US$. If India tries to balance this out by lowering interest rate it will
    face with a possibility of high inflation. Taking these into consideration the prediction's are a Re value of 25 to 35 is highly possible. The next big thing will not be RE but forex trading as the US$ will be volotile.
    CAN

    Originally Posted by contra
    India can observe atleast $50 Billion investment in coming months through FIIs, FDI, ECBs due to stable government which has come to power and a government which is pro reform and proactively encourages public sector disinvestment and more private sector investment. This is good news for domestic investors who hold local assets like quality real estate, shares of quality companies.

    To specific question is Rs.35 per dollar possible or is this good? No clear answers and anything is possible and implications also can be anything.
    CommentQuote
  • If Rupee becomes 35 to an USD, then one can sell his land in India and buy land abroad! BTW, dont guess the figure as KS did. Nobody guessed the move to 38 a few months ago and 99% of IT companies did not guess the upmove to 52 either.
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  • One benefit though if Re strengthens is domestic industry and I mean our poor farmer, labourer etc. They will get more worth in real terms then they have got in the past few decades. I hope the poor man in the street does not get kicked by the silly pseudo educated, thinking WISE guys, who make more just because they are abroad even though they may be working as Taxi drivers there!
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