Friday, August 23, 2013
Marc Faber : Currency Depreciation is the symptom of Poor Balance budget and excessive Consumption,
The rupee has fallen over 15% so far this year and is hitting new lows every passing day. What is your outlook on the currency?
Marc Faber : The falling currency is not the problem; it is the symptom of the problem. It is like fever, which is just a symptom of a disease and not the disease itself. The currency depreciation is the symptom of poor balance budget and excessive consumption, which is reflected in the trade and current account deficit. If there is an increase in the short-term interest rates, where there is real return of rupee deposits, then the rupee will bottom out in the near term. However, over the long term, I am negative about the rupee. - in ET Now
Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.