The value of Indian rupee is going down by every level. It has touched the mark of 62 against the US Currency (Dollar). People in the market and bank sector are wondering whether the rupee will be able to recover itself or not.
Some wishful people are thinking that it will bounce back soon and come to a count of 45 to 50 in some time. They see no reasons for why the rupee will once again go in the bear attitude as it did, few months ago when it touched the levels at 68. The analysts are seeing no reasons to doubt and according to them, the investors are not betting that the value of Indian currency will fall again. According to them, the currency is yet to reach its peak point, and is still under-valued in the eyes of the people and the market.
The only reason that concerns the stock market nowadays is the elections. As the elections in India is coming during the same time US Fed Tapering. If at that time the status of Indian government is not stable, it can be the reason for extra pressure placed on rupee.
However, there are people with different school of thought too. According to them, India won’t be as effected as the other Asian countries by the Tapering. The reason is; the amount of debt is just 2 percent as compared to the Indonesia’s 30 percent of government debt. There is nothing in a way that India is to worry about. As in case of tapering, there is not much that will be relocated from the EM’s to the developed markets. India has been careful while investing in the debts with the foreign investors.
The status of Indian Rupee is good because of the small blip that the US Dollar is facing at the moment. Us Dollar’s index figure is touching 81. This is acting as the biggest supporting factor for the Indian Rupee in the eyes of most of the investors.
The market analyst is looking forward to the time when the Rupee gets its real market value. The analysts are pretty sure of the Indian Rupee and are vouching it to rise and able to maintain its value. According to them, the rupee is being under-valued big time. It should be ranged around 59-60. The present trading values for the Rupee is 68.