Monday, September 16, 2013

Countries with large Trade and current account Deficits tend to have a weakening Currency

ET Now: The debate is on whether the Indian rupee is unvalued or overvalued. Which camp are you following then? 

Marc Faber: Basically countries with large trade and current account deficits tend to have a weakening currency. On that score, India has a structural current account deficit and so the currency is more likely to weaken in future than to strengthen.

Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.


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