Notes on Indian equities, sectors and economy

Rupee’s depreciation against Yuan

Posted by fairval on April 9, 2013

Couple of charts from a Motilal report on capital goods sector. Re has depreciated by around 80% against the yaun. Much of this fall has happened since 2008.

INR's depreciation since '00

Ideally, this should help our exports vis-a-vis China. Exports did very well in FY11 and FY12. In FY13, though, exports are down -5%. Thats the danger – due to inflation, and policy issues, India might fritter away the currency advantage over yuan.




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