Reasons For The Rupee Being Weak

Apart from the US Federal Reserve's actions,the Basic reason  for the Rupee becoming weak is a strong US Dollar.The actions which make the US Dollar strong are:- 
1.The Gold Schemes of the NDA,which are actually INDIRECT Gold Control,preventing Money going into Physical Gold.Recall Gold is INVERSE US Dollar!
2.Half of India's Gold Reserve is outside:-
312 MT with BIS which uses this for Swaps with other central banks.Result cheap Gold and a strong US Dollar, the BoE[ from 1991! ]
3.Huge US Treasury Holdings of $ 162.70 Billion,as of June 2019.
4.Huge Forex of about $ 400 Billion

Gold Silver ratio 84

1.Central Banks are buying Gold,as the USA resorts to Sanctions,other countries are shunning the US Dollar,Liquidity Crunch in the US Dollar due to tapering by the US Federal Reserve,etc.The US Federal reserve may raise rates.
THE REASON FOR THE RATE HIKES :-
1. OVERVALUATION OF COLLATERAL DUE TO ASSET BUBBLE,AS LIQUIDITY IS MORE  AND CASH IS CHEAP.
2.To save the Pension System.The decade long ZIRP,is reported to have destroyed the US Pension System.
3.To deleverage the Huge Corporate Debt.
Besides the Gold\Silver ratio is above 84.Silver looks good.
2.In the BSE\NSE, NHPC looks good,as the GOI has brought out a Policy favouring Public Sector Power Cos.NTPC may buy some stressed Power Cos and has taken a Loan of about US Dollars 150 Million for raising production.
3.ONGC,Oil India and IOC may buyback shares.

One World Government

Ominous !World Government Summit Formed in 2013.
11/2/2018:-
Modi attends!!!

Arizona Alabama And Wyoming,Make Gold And Silver Legal Tender

Arizona And Alabama Make Gold And Silver Legal Tender.
Idaho,follows suit!Wyoming too!
Alas!Bill defeated a week later,in Idaho.

India's US TREASURY Holdings And External debt

India's US TREASURY Holdings:-
$157 Billion .31/3/2018

India’s holdings of US treasuries increased from $67 billion in February 2014 to $101.7 billion in February 2015—which has pushed India above Norway, Mexico and Russia in terms of holdings of US treasuries.

It reasonable to assume,that,the RBI,may have raised,holdings,in OTHER Currencies,also.


The composition pattern of India's external debt is noted below. Long-term borrowings (more than a year to maturity) dominate India's external debt. India classifies its long-term external debt into seven heads. The external debt column notes the value of external debt stock outstanding at the end of December 2017.[1]

S. No. Component External debt (US$) Percentage share
1 Multilateral 56,021 million 10.9%
2 Bilateral 23,371 million 4.6%
3 IMF loans 5,666 million 1.1%
4 Export credit 9,390 million 1.8%
5 Commercial borrowings 196,861 million 38.3%
6 NRI deposits 123,315 million 24.0%
7 Rupee debt 1,205 million 0.2%
Long-term debt 415,829 million 81.0%
Short-term debt 97,609 million 19.0%
Total 513.4 billion 100%; 529 Billion as on 31/3/2018.
GDP 2 Trillion

Debt/GDP about 25%

India's loans from the World Bank stand at $104 billion (IBRD—$54 billion and IDA—$50 billion) as on December 31, 2015. Of this, the World Bank has disbursed $73 billion, with India repaying $37 billion.Jan 13, 2016

India largest recipient of World Bank loans over 70 years  

World Bank Loan interest rates

17.5% 1979,16.5% from 1980 to 1990,18.917 in 1992,15.956 in 1996,13.313 in 2008,10.604 $ in 2012,9.508% in 2017.

From Tradingeconomics:-

 

Calendar GMT Actual Previous Consensus TEForecast

2017-12-29 12:30 PM External Debt $495.7B $485.8B $ 471.5B

2018-03-28 11:50 AM External Debt $513.4B $495.8B $ 503.5B

2018-06-29 12:50 PM External Debt $529.7B $513.4B $ 519.7B

   India is losing heavily in World Bank loans due to a very weak Rupee,while the Loans were taken when the Rupee was comparatively far stronger.Interest rate is also very high compared to IMF and ADB

    Ruppe V Dollar Exchange Rate:-   .

Year Exchange rate

(INR per USD)

1948 1.30

1949 3.67

1950 - 1966 4.76[17]

1966 7.50[17]

1975 8.39[17]

1980 7.86[18]

1985 12.38[18]

1990 17.01[18]

1995 32.427

2000 43.50[18]

2005 (Jan) 43.47[18]

2006 (Jan) 45.19[18]

2007 (Jan) 39.42[18]

2008 (October) 48.88

2009 (October) 46.37

2010 (22 January) 46.21

2011 (April) 44.17

2011 (21 September) 48.24

2011 (17 November) 55.3950

2012 (22 June) 57.15[19]

2013 (15 May) 54.73[20]

2013 (12 Sep) 62.92[21]

2014 (15 May) 59.44[22]

2014 (12 Sep) 60.95[23]

2015 (15 Apr) 62.30[24]

2015 (15 May) 64.22

2015 (19 sep) 65.87

2015(30 nov) 66.79

2016(20 Jan) 68.01

2016(25 Jan) 67.63

2016(25 Feb) 68.82

2016 (14 April) 66.56

2016 (22 Sep) 67.02

2018                68.00

     Conclusion:-

India is losing heavily in WB Loans and US Treasury Holdings.The latter and Forex have to be reduced by at least US Dollars 100 Billion to strengthen the Rupee,which should preferably be 35 to the US Dollar,as we an importing nation.The weak Rupee tranfers wealth to the Rich exporters and Asset-Holders,from the Middle Class and the poor,due to the loss of the purchasing power of the Indian Rupee,thus widening the already high Rich Poor Gap,making the Nation POORER!