{"id":3230,"date":"2020-01-10T20:55:52","date_gmt":"2020-01-10T20:55:52","guid":{"rendered":"https:\/\/jobbinghood.com\/finance\/2020\/01\/10\/from-asias-second-worst-performer-in-2019-rupee-may-beat-most-of-its-counterparts-this-year\/"},"modified":"2020-01-10T20:55:52","modified_gmt":"2020-01-10T20:55:52","slug":"from-asias-second-worst-performer-in-2019-rupee-may-beat-most-of-its-counterparts-this-year","status":"publish","type":"post","link":"https:\/\/jobbinghood.com\/magazine\/2020\/01\/10\/from-asias-second-worst-performer-in-2019-rupee-may-beat-most-of-its-counterparts-this-year\/","title":{"rendered":"From Asia\u2019s second-worst performer in 2019, Rupee may beat most of its counterparts this year"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div>\n<div class=\"article-image\">\n<figure><img fetchpriority=\"high\" decoding=\"async\" class=\"lazy lazy-hidden wp-image-1817915 size-full\" src=\"http:\/\/www.financialexpress.com\/wp-content\/plugins\/a3-lazy-load\/assets\/images\/lazy_placeholder.gif\" data-lazy-type=\"image\" data-src=\"https:\/\/images.financialexpress.com\/2020\/01\/PMVVY-1.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"\" data-srcset=\"https:\/\/images.financialexpress.com\/2020\/01\/PMVVY-1.jpg 660w, https:\/\/images.financialexpress.com\/2020\/01\/PMVVY-1-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/01\/PMVVY-1-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/01\/PMVVY-1-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><noscript><img decoding=\"async\" class=\"wp-image-1817915 size-full\" src=\"https:\/\/images.financialexpress.com\/2020\/01\/PMVVY-1.jpg\" alt=\"\" width=\"660\" height=\"440\" srcset=\"https:\/\/images.financialexpress.com\/2020\/01\/PMVVY-1.jpg 660w, https:\/\/images.financialexpress.com\/2020\/01\/PMVVY-1-300x200.jpg 300w, https:\/\/images.financialexpress.com\/2020\/01\/PMVVY-1-620x413.jpg 620w, https:\/\/images.financialexpress.com\/2020\/01\/PMVVY-1-401x267.jpg 401w\" sizes=\"(max-width: 660px) 100vw, 660px\"\/><\/noscript><span class=\"article-caption\">The rupee was Asia\u2019s second-worst performer in 2019.<\/span><\/figure>\n<\/div>\n<p>India\u2019s rupee will likely beat most Asian peers this year, according to Rabobank, in contrast with other top forecasters who expect the currency to continue trailing. The worst of the country\u2019s economic slowdown has passed and the authorities are unlikely to use currency depreciation as a measure to revive growth, said Hugo Erken, head of international economics at the lender and the top rupee forecaster for the December quarter in Bloomberg\u2019s rankings.<\/p>\n<p>\u201cIndia\u2019s economy already has faced most of the economic pain in 2019, whereas many other Asian countries are still up for a shock,\u201d Erken, who\u2019s been working as an economist since 2002, said by email. The rupee could weaken less than 1% over the next 12 months, while Indonesia\u2019s rupiah may fall 7%, Thai baht 11% and the Malaysian ringgit 9%, he said.<\/p>\n<p>Rabobank\u2019s view is at odds with some of the currency\u2019s other top forecasters, including TD Securities and <a target=\"_blank\" href=\"http:\/\/www.financialexpress.com\/market\/stock-market\/kotak-mahindra-bank-ltd-stock-price\/\" rel=\"noopener noreferrer\">Kotak Mahindra Bank<\/a>, who expect the rupee to trail Asian peers. Erken\u2019s forecast is also at risk from a spike in the price of oil \u2014 India\u2019s top import \u2014 as geopolitical risks continue to loom despite the U.S. and Iran stepping back from a wider military conflict. \u201cGiven the domestic macro and the recent geopolitical issues, the rupee will unlikely be the relatively better-performing currency,\u201d said Suvodeep Rakshit, vice president at Kotak Institutional Equities in Mumbai.<\/p>\n<p>The rupee was Asia\u2019s second-worst performer in 2019 despite about $18 billion inflow into Indian bonds and equities. The reason: the Reserve Bank of India mopped up a net $29 billion in the first ten months of the year as it built its reserves, according to the most recent data.<\/p>\n<p>On Friday, the currency gained 0.1% to 71.1325 per dollar, set to halt three straight weeks of losses. \u201cThe <a target=\"_blank\" href=\"http:\/\/www.financialexpress.com\/tag\/rbi\/\" rel=\"noopener noreferrer\">RBI<\/a> may not be overly concerned, and in fact may favor FX weakness as a means to stimulate exports and the economy, as the pass through to inflation is relatively low,\u201d said Mitul Kotecha, senior EM strategist at TD Securities in Singapore.<\/p>\n<p>India\u2019s economy is set for its slowest\u00a0expansion\u00a0since 2009, weighed down by a slump in spending, data released Tuesday showed. Even so, the authorities may not deliberately weaken the currency to stimulate growth, said Erken, who tracks India from the Netherlands.<\/p>\n<p>\u201cInvestors tend to strongly respond to such strong policies by withdrawing portfolio investments,\u201d he said. \u201cThat is definitely not a gamble the RBI is willing to take from a fiscal, currency and investment stability point of view.\u201d To be sure, crude oil remains the big joker in the pack even though prices have steadied at levels prevailing before the U.S. air strike that killed a top Iranian general last week. \u201cIf the dispute escalates into an armed war, we have to go back to the drawing board,\u201d Erken said. For now, he expects the easing Mideast fears to help the rupee recoup some of its lost ground.<\/p>\n<div class=\"common-bottom-text\">\n<p>Get live <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/\" target=\"_blank\" rel=\"noopener noreferrer\">Stock Prices<\/a> from BSE and NSE and latest NAV, portfolio of <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/\" target=\"_blank\" rel=\"noopener noreferrer\">Mutual Funds<\/a>, calculate your tax by <a href=\"https:\/\/www.financialexpress.com\/income-tax-calculator\/\" target=\"_blank\" rel=\"noopener noreferrer\">Income Tax Calculator<\/a>, know market\u2019s <a href=\"https:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-gainers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Gainers<\/a>, <a href=\"http:\/\/www.financialexpress.com\/market\/stock-market\/nse-top-losers\/\" target=\"_blank\" rel=\"noopener noreferrer\">Top Losers<\/a> &amp; <a href=\"https:\/\/www.financialexpress.com\/mutual-funds-india\/equity-funds\/\" target=\"_blank\" rel=\"noopener noreferrer\">Best Equity Funds<\/a>. Like us on <a href=\" https:\/\/www.facebook.com\/thefinancialexpress\" target=\"_blank\" rel=\"noopener noreferrer\">Facebook<\/a> and follow us on <a href=\" https:\/\/twitter.com\/FinancialXpress\" target=\"_blank\" rel=\"noopener noreferrer\">Twitter<\/a>.<\/p>\n<\/div>\n<\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\n<br \/>[ad_2]<br \/><\/p>\n<div class=\"jobbi-after-content-jh-placement jobbi-entity-placement\" id=\"jobbi-2068252060\"><div id=\"jobbi-3433809188\"><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-5862940809620110\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-5862940809620110\" \ndata-ad-slot=\"\" \ndata-ad-format=\"auto\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><\/div>","protected":false},"excerpt":{"rendered":"<p>[ad_1] The rupee was Asia\u2019s second-worst performer in 2019. India\u2019s rupee will likely beat most Asian peers this year, according to Rabobank, in contrast with other top forecasters who expect the currency to continue trailing. The worst of the country\u2019s economic slowdown has passed and the authorities are unlikely to use currency depreciation as a [&hellip;]<\/p>\n","protected":false},"author":348,"featured_media":2248,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-3230","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-markets"],"_links":{"self":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/3230","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/users\/348"}],"replies":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/comments?post=3230"}],"version-history":[{"count":0,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/posts\/3230\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media\/2248"}],"wp:attachment":[{"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/media?parent=3230"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/categories?post=3230"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jobbinghood.com\/magazine\/wp-json\/wp\/v2\/tags?post=3230"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}