The rupee is now one of the worst performing currencies in Asia as its value plunged to an all time low earlier this year. While the government is trying its best to arrest the currency decline further, economic experts have cautioned that rupee could hit 100 level to dollar mark in the coming years.
Marc Faber, editor of Gloom, Boom and Doom report, opined that India’s financial position is worrying and not good. He suggested that the government need to immediately take steps to strengthen the rupee. He said the interest rates must be increased meaningfully in order to control rupee depreciation.
He predicted that the rupee will continue to depreciate by 5-10 Percent every year from now onwards and may breach the 100 mark to dollar rate. Faber pointed out the alarming fiscal situation of the country and said the tendency of Central Banks to step back from asset purchases and get interest rates to adjust on the upside gradually as the reason for the current financial position.
