I have the App. XE.com downloaded on my mobile… mainly to see the exchange rate of Kuwaiti Dinar to Indian Rupees.
This is important for a non resident Indian working in the Middle East where the investment option for any income surplus after consumption expenditure is mainly in India.
A few months back when I became non resident Indian again, one KD gave Rs.206. Now it’s Rs.229. This in Rupee terms an increase in income of about 9.75%
Or is it? With the world becoming connected and more global in outlook, a weak currency may infer that everything is not well, whether you are a resident or non resident.
Then we read the commerce minister welcoming weak rupee. Also that China was accused of deliberately keeping the currency devalued and making world beating growth rates.
The reason for the above could be simple- easier exports and difficult imports.
At any rate, weak currency is not good for national pride.
Interestingly predictions are not working well when it comes to currencies. Of course, there is George Soros who made a couple of billions of pounds with an attack on sterling pound. And the Chinese premier warned him to keep off yuan a few days back.
We are not George Soros but may do well in taking a precaution. Take currency risk into account for any investment, when you send children for overseas studies, when talking foreign currency loans for Interest rate differentials etc.
A little bit of analysis to the usual prudent decisions is need of the hour.