tag:blogger.com,1999:blog-8541474529241719206.post1457096738789558423..comments2023-06-01T16:59:26.599+05:30Comments on Ila Patnaik's Blog: The taming of the rupee...Unknownnoreply@blogger.comBlogger5125tag:blogger.com,1999:blog-8541474529241719206.post-77042200228871806722013-08-01T16:57:05.182+05:302013-08-01T16:57:05.182+05:30This is very useful post for all traders........
f...This is very useful post for all traders........<br /><a rel="nofollow">forex tips</a><br />Rahul Solankihttps://www.blogger.com/profile/07173361683672807062noreply@blogger.comtag:blogger.com,1999:blog-8541474529241719206.post-39595367883765251512013-07-16T18:03:15.252+05:302013-07-16T18:03:15.252+05:30Thank you for sharing this info. great post.
http:...Thank you for sharing this info. great post.<br />http://www.fx-insights.comAnonymoushttps://www.blogger.com/profile/06019938366875248225noreply@blogger.comtag:blogger.com,1999:blog-8541474529241719206.post-7908518122810927482013-07-15T12:49:44.875+05:302013-07-15T12:49:44.875+05:30MR.VIMAL,
My Argument regarding FII flows was cons...MR.VIMAL,<br />My Argument regarding FII flows was considering the very short term scenario, you must have seen that whenever there is pullout by FII’S, RBI felt the need to intervene, like we have seen just after the statement of FED that they are going to stop infusion (QE3) over a period of time depending upon the upcoming data, we have seen pullout from equities and even more pullout from debt segment so it creates volatility and panic.<br />Secondly I agree that rupee's movement is a signal about the underlying economic structure (in the long run) and regulators have limited scope but I think if we (government) do the fundamentals right like increasing the exports we will be able to achieve stabilization in the rupee even if more than half of the INR market is not in India. <br />VISHALnoreply@blogger.comtag:blogger.com,1999:blog-8541474529241719206.post-50442644365939854442013-07-15T11:41:15.492+05:302013-07-15T11:41:15.492+05:30Vishal, I'm not sure if FII flows can be singl...Vishal, I'm not sure if FII flows can be singled out as the reason behind the free-fall. Secondly, the argument regarding the maturity of the Indian economy is circular: So long as the Central Bank and the Government is unwilling to let the rupee's price be fully discovered by the market, no firm in India will learn how to hedge against currency movements, and moral hazard sets in. The rupee's movement is a signal about the underlying economic structure, not an end in itself to contain. The argument here is that even if the regulator wants to do something about it, the harsh reality is that they may not be able to because more than half of the INR market is not in India. Vimal Balasubramaniamhttps://www.blogger.com/profile/16378099011167625695noreply@blogger.comtag:blogger.com,1999:blog-8541474529241719206.post-59813426233666956162013-07-12T14:23:47.849+05:302013-07-12T14:23:47.849+05:30It’s true that these short term measures will not ...It’s true that these short term measures will not help to defend the freefall of rupee and it will affect the free market price discovery in the short term , when economy is open its currency reflects the competitiveness of the country and without any doubt government is responsible for this messy situation and worrisome fall in the rupee.<br />Having said that, economy like India which is very much prone to FII'S flows which makes short term distortion to exchange rates and drives the stock markets, regulators have no choice but try to defend the freefall in order to save importers because Indian economy is not that matured to accept the total free exchange rate in this situation and tolerate the sharp shocks of volatility in the exchange rate. REGULATORS ARE FORCED BY THE CURRENT SITUATION BECAUSE OF WRONG DOINGS BY THE GOVERNMENT.vishalnoreply@blogger.com