INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Marc Faber, editor and publisher of The Gloom, Boom Doom Report, on Tuesday said the rupee could hit 100 to the dollar mark over
Either India has to increase interest rate meaningfully or has to let the rupee depreciate over time, Faber told ETNow in an interview.
In
an earlier interview to the TV channel earlier, Faber had predicted a 20 per cent drop in Sensex to a sub-30,000 level this year.
He said
the rupee looks oversold and a bit of rally is on the cards, which may lift the domestic currency to 71-72 levels.
That said, he felt the
currency could depreciate 5-10 per cent annually over the next few years and may touch 100 to the dollar.
Faber said financial markets were
very fragile at the beginning of this year and that fragility is only increasing as there has been a tendency among central banks to step
back from asset purchases and get interest rates to adjust on the upside gradually.
Global liquidity has not been shrinking, but growing at
a diminishing rate, Faber said
they are adjusting on the downside.
A 7 per cent drop in US stocks from their peak levels is not meaningful, but it may become meaningful,
Stocks in Argentina, Brazil, Turkey and parts of Asia have corrected materially
Faber said some of the emerging markets (EMs) now have better financials than those in 1997.
He said he would prefer to buy into EMs than
