Latest News:  
Beijing   Cloudy/Overcast    0 / 5   City Forecast

People's Daily Online>>World

US dollar's status to be strengthened: Indian economist


22:38, November 28, 2011

MUMBAI, Nov. 28 (Xinhua) -- The status of U.S. dollar as anchor currency will be strengthened with expected weakening of Euro until March 2012, said Madan Sabnavis, chief economist with Indian credit rating company CARE Ratings on Monday.

"Euro will continue to weaken against U.S. dollar and couldn't get better until March 2012. The exchange rate of Euro against U.S. dollar will be in the range of 1.33 to 1.35 in the period," Sabnavis told Xinhua.

He said, "It's possible for Euro zone to collapse but it won't happen any time soon."

The countries heavily reliant on EU will be impacted from EU debt crisis and India is relatively insulated from the debt crisis, said the economist.

Five European governments have faded and every country in Europe was not immune to the crisis, said Sabnavis on the impact of Europe debt crisis.

Now the U.S. government is stronger though it also shouldered temporary impacts in August 2011, according to Sabnavis. He added, "I don't see any political repercussion in the U.S."

In 2012, world economy will face the same kind of risks as 2011 and what happens in EU and other countries needs to be closely monitored, warned Sabnavis.

Though not fully, the decoupling of emerging economies from developed ones is good for emerging economies, said Sabnavis.

Still the economist held that emerging economies can't be secured against risks spreading from developed economies, since the situation is driven by market forces.

It's an option for Reserve Bank of India (RBI) to intervene into the forex market to curb the depreciation of Indian rupee, he said.

Sabnavis said that south-to-south trade has huge potential and could play a role to recoup losses.

Indian rupee has depreciated around 15 percent against U.S. dollar in 2011, partially leading to persistent inflation and worsening fiscal deficit.


Leave your comment0 comments

  1. Name


Selections for you

  1. Henan Province amends its family-planning policy

  2. Code blue alert renewed to warn fog in NE China

  3. Luxurious jewelry in Qing Dynasty

  4. Students learn folk culture at primary school

Most Popular


  1. Corporate efforts better than govt ad in selling China
  2. Iceland deal hits local firms with dose of cold water
  3. Are Chinese people truly miserable?
  4. Protecting monetary sovereignty
  5. Think competitively
  6. Public anger hits the roof
  7. Zero-sum mentality should be ditched
  8. US expected to contribute to Asian economy
  9. No end in sight for economic doldrums
  10. China supports UN green industry initiative

What's happening in China

Jewelry used by emperor's harem in Qing Dynasty

  1. China to ban inserted ads in TV dramas
  2. Mother-to-child HIV/AIDS infection plunges
  3. First China-ASEAN Auto Expo to kick off
  4. China's industrial profits up 25 percent
  5. KFC to open in Sinopec gas stations

PD Online Data

  1. The lion dance in Guangzhou
  2. The flower fair in Guangzhou
  3. Lion dances pay New Year calls in Guilin
  4. Jiangsu´s special New Year traditions
  5. Hakka traditions in Spring Festival