The Sinking Rupee Through Foreign Eyes

Here’s the Financial Times on the depreciating Rupee:

“the rupee has lost 57 percent of its value against the US currency since it peaked at 39.40 rupees to the dollar in February 2008”.

So basically foreign investors have lost over half the value of their original investment in India in dollar terms  in the previous 5 years.Or 15% per year.How many of their investments returned over 15% per year?Was the overall return so much better than the 1-2% returns in their own countries?Does it explain why Indian financial assets don’t seem so interesting to foreigners and NRIs?

Small wonder that the only Indian assets that Dollar owners want is real estate,So boys and gals get ready for another round of irreversible increase in the price of land and real estate.Even today,the average family can own an average Mumbai flat only by saving 10 lacs a year for 30 yrs and that’s not considering interest .Pray how many Indians have incomes that can allow such savings over a life-time?Get ready to be priced out of the market and become a life-long renter.