Cheapstakes

• Rupee falls by over 8% this year, a 13-month low against the dollar
  
• Foreign capital inflows have dried up because of the turmoil in the global financial market
  
• Increased dollar demand due to crude oil price spike, higher imports
  
• Curbs on external borrowings by Indian firms contribute to the decline

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• With the Chinese yuan set to appreciate, Indian exports become more competitive
  
• Project and services exports to see improved returns, more employment creation
  
• More expensive oil imports will put pressure on India's current account deficit
  
• Anti-inflationary impact of cheaper imports of edible oil and pulses gets negated

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• Rupee expected to remain weak for the next few months, near Rs 42-44 levels
  
• Rupee gains expected later in the year as global equities on the recovery track
  
• If the Reserve Bank of India lifts restrictions on borrowings abroad, will improve rupee sentiment
  
• Traders feel the rupee will return to Rs 39 per dollar levels by the end of the year

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