Weak rupee 8216 could boost India in long term 8217

The Indian rupee hit a new record low against the US dollar this week, but the weakness of the currency could be good for the country's economy in the long term.

This is the view of Chris Towner, director of FX Advisory Services at foreign currency exchange brokers HiFX, who stated that with India having an election next year, the timing is good for the currency to be at a low point.

He explained a weak rupee could help to boost exports from the Asian nation, which would in turn provide support to the country's economy.

Mr Towner said: "With Indian goods now 30 per cent cheaper than six months ago, arguably British importers of Asian goods may have a choice of buying from India and not just China."

He pointed out that the fortunes of the Indian and UK economies appear to have traded places in the last few months, with India struggling and the UK on the road to recovery.

Vishnu Varathan, an economist with Mizuho, told BBC News the rupee could yet fall even further against the US dollar in the coming weeks.

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