The falling [Indian] 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.
Contrarian Investor Dr.Marc Faber is an international investor known for his uncanny predictions of the stock market and futures markets around the world.
