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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Not only have foreign institutional investors been pulling out funds from the Indian market, having withdrawn a whopping Rs 46,197 crore in three years, the spectre of higher crude prices due to the sanctions against Iran could disturb the applecart further considering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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Apple Music On Lead Over Its Rival Spotify In All Market: Report

Trial users were not part of the comparison, the report added.

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Apple Music now has more than 45 million subscribers world-wide, with an additional 5-10 million free trial users.
Apple Music now has more than 45 million subscribers world-wide, with an additional 5-10 million free trial users. Pixabay

With more than 20 million paying users in the US, Apple Music has just taken the lead over its rival Spotify in an all-important market, the media reported.

Spotify still leads outside of the US, tallying 75 million subscribers as part of its first earnings report in May.

“The source, a US-based, major distributor, shared a report detailing the subscriber tallies of several streaming music services, including Apple Music, Spotify, Tidal, and Sirius XM. That report now ranks Apple Music as first in the US, at least among primarily on-demand music streaming services,” the Digital Music News recently reported.

Spotify Music still leads outside of the US, tallying 75 million subscribers as part of its first earnings report in May.
Spotify Music still leads outside of the US, tallying 75 million subscribers as part of its first earnings report in May. Pixabay

The data for 2018 also shows that Apple is experiencing a far stronger rate-of-growth in the US, suggesting a wider lead over the coming months.

Trial users were not part of the comparison, the report added.

Apple Music now has more than 45 million subscribers world-wide, with an additional 5-10 million free trial users.

Also read: 6.5-Inch Colorful iPhones To be Launched This Year By Apple

The iPhone maker’s free trials last about three months while Spotify says it has more than 70 million paying subscribers globally, with roughly 160 million overall users. (IANS)

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