Sri Lanka Equity Forum
Dear Reader,

Registration with the Sri Lanka Equity Forum would enable you to enjoy an array of other services such as Member Rankings, User Groups, Own Posts & Profile, Exclusive Research, Live Chat Box etc..

All information contained in this forum is subject to Disclaimer Notice published.


Thank You
Sri Lanka Equity Forum

Discussion Forum for Stock Market Investors in Sri Lanka

සිංහල පරිවර්තනය
Submit Post
Submit Post

Latest topics

» New to investing. Looking for advice
by srad11 Today at 8:20 am

» Weekly Stock Market Roundup
by Insights Equity Today at 6:30 am

» CROSSINGS TODAY
by sikka89 Yesterday at 6:45 pm

» Financial Reports Q-4 2018
by sikka89 Yesterday at 6:41 pm

» DIVIDEND ANNOUNCEMENTS- JAN/MARCH 2019
by sikka89 Yesterday at 6:33 pm

» Daily Stock Market Update
by Insights Equity Yesterday at 5:57 pm

» CTCE CTCE CTCE CTCE
by Agape Yesterday at 5:34 pm

» 20 companies hit 12 month low today
by aravinda123 Yesterday at 2:40 pm

» SRI LANKA,AMERICA 0027655786861 MAAMABARAKA 2019 INSTANT BLESSING SANDAWANA OIL/SKIN,BUSHILI OIL,HALUWA OIL,RUKUYA OIL FOR BRING BACK LOST LOVERS,SALARY INCREASE,BUSINESS BOOST,ATTRACT CUSTOMERS OMAN,KUWAIT,GERMAN,SOUTH AFRICA,LESOTHO
by maamabaraka Yesterday at 1:52 pm

» SRI LANKA+27655786861 TESSELLATED MAGIC RING/WALLET/SKIN FOR QUICK MAGIC MONEY,BRING BACK LOST LOVERS,SALARY INCREASE,STOP BAD LUCK AND SPELLS IN LIFE,QUICK SALE OF PROPERTY,FAMOUS AND RESPECT IN SOUTH AFRICA,ZIMBABWE,BOTSWANA,NAMIBIA
by maamabaraka Yesterday at 1:32 pm

» MARKET CRASH - GUARANTEED
by pure equity Yesterday at 1:27 pm

» SRI LANKA 0027655786861 APETAMIN CREAM/YODI PILLS FOR HIPS,BUMS,BREASTS ENLARGEMENT WITH A PROVED SERVICE OF NO SIDE EFFECTS AT ALL SHARPE UP IN 3 DAYS TIME IN AMERICA,UK,SOUTH AFRICA,BOTSWANA
by maamabaraka Yesterday at 1:16 pm

» SRI LANKA,HAWAII,OREGON +27655786861 BE SMART JOIN ILLUMINATI NEW WORLD ORDER FOR MONEY POWER,SUCCESS IN LIFE AND BUSINESS,CHURCH POWERS TO PROPHETS,OVER COME ALL EVILS AND MAGIC POWERS,FAMOUS
by maamabaraka Yesterday at 1:00 pm

» SRI LANKA +27655786861 POWERFUL WOMAN LOVE SPELLS RITUAL,MONEY SPELLS,REVENGE SPELLS,STOP DIVORCE SPELLS IN SOUTH AFRICA,AMERICA,OMAN,SWEDEN,DUBAI
by maamabaraka Yesterday at 11:58 am

» 0027655786861 TIME TO WIN IT LOTTO/LOTTERY,POWER BALL,,JOCK POT INTERNATIONAL SPELLS GERMAN,SWEDEN,DUBAI,SOUTH AFRICA,NAMIBIA
by maamabaraka Yesterday at 11:40 am

» GOOD DEAL -SELL KAPI @ 18 LEVELS AND BUY BFN @ 14-50
by easthetic Yesterday at 7:31 am

» සල්ලි තියනවනම් දැන් නියම වෙලාව කියල එකතු කරන්න BFN -UBC -BALA -EAST - LEDV -KHL -KHC -SERV
by sanjulanka Yesterday at 6:52 am

» COLLECT AAIC FOR A BETTER FUTURE!!!
by wisdom79 Thu Feb 21, 2019 10:29 pm

» Sri Lanka rupee ends higher as banks sell dollar; stocks at near 4-mth low
by Ahcha Thu Feb 21, 2019 1:47 pm

» INSURANCE bubble finally bursting!
by nosf766 Thu Feb 21, 2019 10:22 am

» SFL deal price
by charithaa Thu Feb 21, 2019 10:00 am

» MGT - Collect n keep
by Trader321 Thu Feb 21, 2019 9:54 am

» UBC.N0000 ? what about the future ?
by Trader321 Thu Feb 21, 2019 9:49 am

» Deal Waligama Property to be sell EAST Interesting
by NCC Thu Feb 21, 2019 9:13 am

» SFL, where will it end by March
by sikka89 Thu Feb 21, 2019 5:30 am

» තාම dividend cheque නේද එන්නේ, කවදාද account එකට එන්නේ
by hasitha@CSE Wed Feb 20, 2019 4:58 pm

» Exit KAPI today
by Maharaja Wed Feb 20, 2019 3:08 pm

» Amibroker database
by Sonny Bill Wed Feb 20, 2019 12:59 pm

» ACCESS ENG
by sanjulanka Wed Feb 20, 2019 12:51 pm

» TKYO.N000 potential
by NP Wed Feb 20, 2019 12:00 pm

» JANASHAKTHI INSURANCE COMPANY PLC (JINS.N0000)
by cheetah Wed Feb 20, 2019 5:46 am

» CASH RICH REXP
by Cricketman Wed Feb 20, 2019 5:21 am

» Earn 50% Profit From Forex Monthly Without Stress
by princess111 Tue Feb 19, 2019 8:25 pm

» Ruwan 326 Please come back to the forum
by Miss-Sangeetha Tue Feb 19, 2019 8:06 pm

» Make a comfortable living as a day Trader
by Miss-Sangeetha Tue Feb 19, 2019 7:23 pm

» Daily Foreign Transactions
by sikka89 Mon Feb 18, 2019 10:49 pm

» Sleeping giants-
by Chanaka303 Mon Feb 18, 2019 4:56 pm

» Any news on TKYO.N0000
by Thushara Ayya Mon Feb 18, 2019 3:35 pm

» Can anyone recommend me a stock broker in Kandy
by Chanaka303 Mon Feb 18, 2019 2:21 pm

» CTCE ලාභාංශ පුරොකතනය.
by dmtmadusanka Mon Feb 18, 2019 10:22 am

You are not connected. Please login or register

Sri Lanka Equity Forum » Stock Market News » Indian Rupee's journey since Independence: Down by 65 times against dollar

Indian Rupee's journey since Independence: Down by 65 times against dollar

Go down  Message [Page 1 of 1]

VALUEPICK

VALUEPICK
Expert
Expert
http://articles.economictimes.indiatimes.com/2013-08-24/news/41444029_1_indian-rupee-american-currency-continued-dollar-demand

Aug 24, 2013, 01.54PM IST

SMC Capital

The Indian rupee, which was on a par with the American currency at the time of Independence in 1947, has depreciated by a little more than 65 times against the greenback in the past 66 years.

The rupee touched its historic record low of below 65 (intraday) against the dollar last week on sluggish local stocks and continued dollar demand from importers.

The currency has witnessed huge volatility in the past two years. This volatility became severe in the past three months affecting major macro-economic data, including growth, inflation, trade and investment.

Managing volatility in the currency markets has become a big challenge for policymakers. Despite of a series of measures taken by the central bank as well as the government to curb the volatility in the markets, the rupee continues to depreciate.

The trend is unlikely to reverse any time soon.

This rupee depreciation is badly hurting the Indian economy. It is fuelling inflation and has hurt economic growth.

JOURNEY SINCE INDEPENDENCE

The Indian currency has witnessed a slippery journey since Independence. Many geopolitical and economic developments have affected its movement in the last 66 years.

When India got freedom on August 15, 1947, the value of the rupee was on a par with the American dollar. There were no foreign borrowings on India's balance sheet.

To finance welfare and development activities, especially with the introduction of the Five-Year Plan in 1951, the government started external borrowings. This required the devaluation of the rupee.

After independence, India had chosen to adopt a fixed rate currency regime. The rupee was pegged at 4.79 against a dollar between 1948 and 1966.

Two consecutive wars, one with China in 1962 and another one with Pakistan in 1965; resulted in a huge deficit on India's budget, forcing the government to devalue the currency to 7.57 against the dollar.

The rupee's link with the British currency was broken in 1971 and it was linked directly to the US dollar.

In 1975, value of the Indian rupee was pegged at 8.39 against a dollar.

In 1985, it was further devalued to 12 against a dollar.

In 1991, India faced a serious balance of payment crisis and was forced to sharply devalue its currency. The country was in the grip of high inflation, low growth and the foreign reserves were not even worth to meet three weeks of imports. Under these situations, the currency was devalued to 17.90 against a dollar.

1993 was very important. This year currency was let free to flow with the market sentiments. The exchange rate was freed to be determined by the market, with provisions of intervention by the central bank under the situation of extreme volatility. This year, the currency was devalued to 31.37 against a dollar. The rupee traded in the range of 40-50 between 2000 and 2010.

It was mostly at around 45 against a dollar. It touched a high of 39 in 2007.

The Indian currency has gradually depreciated since the global 2008 economic crisis.

Liberalising the currency regime led to a sharp jump in foreign investment inflows and boosted the economic growth

PRESENT SCENARIO

In the week gone by, the Indian rupee extended falls to a new low of 65.50 to the dollar as heavy demand from importers along with weak domestic equities continued to weigh on sentiment.

Weakness was also seen after Federal Reserve minutes hinted that the United States was on course to begin tapering stimulus as early as next month.

Moreover, continuing its slide, the rupee also made all time low against British pound and breached the 102-mark on local bourses.

With this, British pound has become the first major foreign currency to cross 100 levels against rupee.

However, steps taken by the RBI and the government to curb volatility in the exchange rate have had little effect so far.

The government is now exploring structural measures to narrow the current account deficit, Finance Minister P Chidambaram said, adding that there is no plan to introduce capital controls.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum