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Indian Rupee: One Of The Worst Performing Currencies

The rupee is still overvalued, according to the 36-country Real Effective Exchange Rate calculation after adjusting for inflation

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Indian Rupee: One Of The Worst Performing Currencies. flickr
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The Indian rupee’s plunge to an all-time low of 69.09 against the US dollar, compared to the previous low of Rs 68.865 in November 2016 reflects the ill-effects of US President Donald Trump’s disastrous economic policies on the world at large. Indeed, American protectionism through higher import duties coupled with the consequences of renewed US sanctions against Iran is indeed playing havoc with economies across the world. That the rupee has fallen by more than eight per cent over the last one year is not good news for India, though, there is a silver lining in terms of the possibility of higher exports. The hard reality is that the rupee is one of the worst performing currencies in the world and the consequences of American policies could make things worse.

Not only have foreign institutional investors been pulling out funds from the Indian market, having withdrawn a whopping Rs 46,197 crore in three years, the spectre of higher crude prices due to the sanctions against Iran could disturb the applecart further considering that India depends heavily on crude imports to meet its oil needs. If there is any consolation at all for the rupee’s plunge, it is that most emerging market currencies are crashing.

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Indian currency notes. Pixabay

Also read: Crores of rupees being spent on defunct websites of Municipal Corporation of Delhi

The Reserve Bank’s prop by selling US$400 to 500 million in one-month futures contracts has saved the day for India. Almost an equal amount has been sold through Mint Street. Mercifully, a weak rupee need not be necessarily bad for the Indian economy. The rupee is still overvalued, according to the 36-country Real Effective Exchange Rate calculation after adjusting for inflation. As of May, the over-valuation was 14.67 per cent. This could give exports a boost which is a silver lining. There is also a Moody’s report which says that India is one of the five countries that are least vulnerable to currency pressures amid strengthening of the US dollar due to low dependence on external capital. But the downside is that as US interest rates go up, investors who borrowed at a cheaper rate would find returns from investing in India not worth the risk. On balance, major economic challenges lie ahead of India meeting with would be no mean task. (IANS)

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Heavy Cyber Attacks From Russia, US, China In India

These honeypots are developed to deceive even elite hackers and appear to be serving a specific purpose or organisation.

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A man holds a laptop computer as cyber code is projected on him in this illustration picture. VOA

India has been the target of over 4.3 lakh cyber attacks from five countries including China, Russia and the US while more than 73,000 attacks were initiated from India between January and June this year, says a Finnish cybersecurity company.

According to F-Secure’s honeypot data, Russia, the US, China, the Netherlands and Germany targeted India with 436,090 attacks. This is nearly 12 times more than which originated from India.

Honeypots are basically decoy servers that emulate the real IT environment of a business enterprise.

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Due to its nature, the chip is physically unclonable and can, thus, render the device invulnerable to hijacking, counterfeiting or replication by cyber-criminals. Pixabay

Russia accounted for most cyber attacks on India (255,589), followed by the US (103,458), China (42,544), the Netherlands (19,169) and 15,330 attacks from Germany.

On the other hand, the top five countries that were targeted by Indian cyber attackers were Austria, the Netherlands, the UK, Japan, and Ukraine — a total of 36,563.

F-Secure gave the break-up: Austria (12,540), the Netherlands (9,267), the UK (6,347), Japan (4,701) and 3,708 attacks targeted Ukraine’s businesses.

“The relatively higher number of inbound attacks on Indian honeypots reflects how the fast-digitising country is becoming more lucrative for global cyber criminals,” Leszek Tasiemski, Vice President of cyber security products R&D at F-Secure, said in a statement on Sunday.

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Experts: Cyber attacks Growing Increasingly Sophisticated. Pixabay

“We are gathering and analysing all the pertinent data to ensure that our customers stay protected given the dynamically evolving threat landscape,” he added.

To track these cyber attacks, F-Secure has deployed 41 honeypots across the globe.

“Our public honeypots are a valuable source of threat intelligence and an integral part of the infrastructure that powers our various security offerings, including our Rapid Detection and Response Service,” Tasiemski said.

Honeypots are set up explicitly to grab attention of attackers. They are used to gain critical insights on attack types, popular targets, sources, volume and TTPs (Tactics, Techniques and Procedures).

Such insights are collected by deliberately allowing potential attackers to gain unauthorized access to the emulated services of a server and then studying the attack path to the point that the attacker realizes it is a honeypot, F-secure said.

Also Read: U.S. Government Warns People Against China-Linked Hacking Group

These honeypots are developed to deceive even elite hackers and appear to be serving a specific purpose or organisation.

They enable F-Secure to collect the latest malware samples or shell scripts and new hacking techniques.

The research data is then processed to further benefit F-Secure customers via product enhancements and threat intelligence reports. (IANS)