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How Jupiter's Vazirani is playing the Indian rupee slide
by Avinash Vazirani on Aug 23, 2013 at 12:51
That said, economists do see the rupee strengthening against the US dollar by year end and it is a view we share.
India's key strength
It is easy in the current currency maelstrom to forget some of the key strength of the Indian economy.
First, it is an economy that it is still growing at a solid pace with the IMF forecasting GDP growth of 5.6% in 2013 and 6.4% in 2014. Even if the growth rate is marginally lower than this, much of this growth will be driven by the huge amount of demand for goods and services from India’s growing population of 1.2 billion.
And whilst a falling rupee does raise the spectre of inflation, India’s exporters will be rejoicing. It will be up to the RBI to steer a delicate course between growth protection and currency stabilisation.
We continue to remain overweight consumers as we believe that this is the most resilient sector in India with good growth, particularly in view of expected higher agricultural output and the resulting rural growth (70% of the population still lives in rural India) and have increased exposure to exporters who will benefit from a competitive currency.
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by Alex Steger on Dec 11, 2013 at 10:19