Indian Rupee Stronger Than US Dollar

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The news trails behind us.

From India comes word that the Sensex index has topped 20,000.

We recall the words of our local analyst:

“India is a long-term buy, but maybe not a short-term buy. There is plenty of room for growth. The inflation rate is about 6%. And the economy is growing at 9%. So, you could get 15% growth just by keeping up with everyone else. We tell our investors to expect 20%…because we think we can add another 5% by choosing shares carefully.”

American readers might be interested to know – the rupee is actually stronger than the dollar. So dollar-based investors might pick up a point or two there too.

15%…20%…25% per year? Not bad. Unlike China, India does not depend on US consumers…nor on a banking sector controlled by communists. Both circumstances are bound to cause trouble for China, we believe. And whatever trouble comes to the world economy, India could get through it relatively easily.

We have no news from Australia, which we just left yesterday…but the news from the commodities sector is bullish. And when commodities go up, so do Australia’s profits.

Meanwhile, it’s too bad about the gold price. A nice correction – down to, say, US$750 – would have given us a welcome opportunity to buy. You know the drill, now, dear reader: sell stocks on rallies, buy gold on dips. Trouble is, we haven’t had much of a dip. Should we wait? Or buy now? We wish we knew. Personally, we’re buying . Not because we think this is the best price we can get, but simply because we have a little money and can’t think of anything better to do with it.

Bill Bonner
The Daily Reckoning Australia

Bill Bonner

Bill Bonner

Best-selling investment author Bill Bonner is the founder and president of Agora Publishing, one of the world's most successful consumer newsletter companies. Owner of both Fleet Street Publications and MoneyWeek magazine in the UK, he is also author of the free daily e-mail The Daily Reckoning.
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9 Comments on "Indian Rupee Stronger Than US Dollar"

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Ali.
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India is actually a proponent of ‘leapfrogging’ in the technology department, which means they should easily outperform oecd countries going forward, and they have the hardest working call centre workers that I have the weekly pleasure of not hanging up on but I put the phone down alongside the receiver and when I return some hours later and enquire ’bout their special offer, they have already hung up, now that is rude isn’t it? …and that’s all I’ve got to say ’bout that !

christina
Guest

Hi there. You know how the stock market is soon gonna crash, well instead of calling the cycles bears and bulls, I’ve got a better name for them. How about bears and bullcraps. That explains it all much better, don’t you think? :-)

b.reed
Guest

How is the Indian Rupee stronger than the dollar?

1 INR = 0.025 USD

what?

RDP
Guest

I also do not see the logic about Indian Rupee stronger than $$ ??

Indian Gold Investor
Guest

Perhaps the reason why the rupee seems to be getting stronger is because of the Gold that the citizens and non-residents have been hoarding?

Sam
Guest
The stupid comments by the idiots here looking at a currency conversion rate and then asking how the Rupee is stronger than the USD, is indicative of how dumb the average American is. A strength of a currency is not based off solely it’s conversion rate, but a variety of factors such as it’s foundation, liquidity, backing etc. Typical Americans so proud of their stupid dollar! The average American is more concerned about some stupid sports score than what is happening in their country and the rest of the world. Hold on! There is a rest of the world?!?! Shoot,… Read more »
John
Guest

What he meant by “Rupee is stronger than the dollar” is that the rupee will gain against the dollar, so dollar-based investors get the return on the stock and then additional return on the exchange rate.

James
Guest

Call center don’t hang up perhaps but they don’t record the call either – at least that’s what happened when I called one recently

Greg Peter
Guest

This is childish to call a growing economy as “call center”. I am an Aussie working in Information technology and integrated with all the core technologies. I can surely tell that all most all the place Indians are predominant. I been to India couple of times through my company and seeing the infrastructure growth , I really wonder how it is 1 INR = 0.025 USD , it should be somewhere at-least 1 INR = 0.06 USD. People started knowing this, what Bill talking about.

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