INR

INR

Postby winston » Wed Dec 14, 2011 8:18 am

Indian Rupee Slides To Fresh Record Low Against Dollar

(RTTNews) - The Indian rupee declined to a fresh record low against the U.S. dollar in early deals on Tuesday, as regional equities fell after Moody's Investors Service and Fitch Ratings said they are not satisfied with the outcome of last week's European Union summit.

The rupee also dropped on worries about the domestic economy after government data released yesterday showed India's industrial output contracted 5.1 percent in October, the first drop in over two years.

The rupee touched a fresh record low of 53.345 per dollar, compared to yesterday's close of 52.835.

The Indian currency has lost more than 19 percent against the dollar thus far this year, sparking worries of a capital outflow.

The rupee's relentless slide against the dollar is likely to fuel inflationary pressures in Asia's third-largest economy.

A lower rupee will also increase gasoline subsidy costs in a nation that imports 80 percent of its fuel.

The Indian currency's depreciation has already started pushing up prices in some sectors like automobile, consumer goods, and mobile phones.

State-owned oil marketing companies, which sell diesel and cooking fuels at government-controlled prices, are also piling up revenue losses as a falling rupee is pushing up the cost of oil imports.

Every rupee's fall against the dollar increases the combined gross revenue loss for Indian Oil Corp Ltd, Bharat Petroleum Corp Ltd and Hindustan Petroleum Corp Ltd by a staggering 8,000 crore.

Indian authorities have recently taken steps to attract foreign capital portfolio inflows and made it easier for Indian firms to hedge their currency risks, but most analysts now expect tougher measures.

Meanwhile, market participants eagerly await November inflation numbers that will be out tomorrow for cues about the Reserve Bank of India's policy moves at the upcoming policy meeting later this week.

http://www.rttnews.com/ArticleView.aspx?Id=1779892
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Re: INR

Postby winston » Fri May 11, 2012 6:35 am

India Forces Exporters to Sell Foreign Currency Holdings

India's central bank made a dramatic move to prop up its battered currency on Thursday, requiring exporters to sell half the foreign currency in their accounts, which helped to strengthen the rupee in morning trade.

http://www.cnbc.com/id/47366198
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Re: INR

Postby winston » Wed May 16, 2012 5:54 pm

Worries for India rise as rupee hits record low by Salil Panchal

India's rupee hit a record low against the dollar on Wednesday and stocks fell nearly two percent, as uncertainty over the eurozone debt crisis and weak domestic indicators hit Asia's third-largest economy.

The Indian unit fell to 54.43 rupees to the dollar in early afternoon, breaching its previous intraday lifetime low of 54.30 struck on December 15.

Traders said they expected the rupee to fall further in coming days with risk aversion hitting global markets and sentiment souring about India because of its ballooning fiscal deficit, slowing economy and political logjam.

http://www.newsmeat.com/news/meat.php?a ... &buid=3281
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Re: INR

Postby winston » Mon May 28, 2012 8:39 pm

India rupee woes 'highlight economic drift' by Salil Panchal

India's rupee, which hit an unprecedented string of all-time lows last week, is set for more falls unless policymakers move quickly to put Asia's third-largest economy back on track, analysts say.

The rupee, which slumped to as low as 56.38 to the dollar last week, pulled back marginally to 55.29 on dollar profit-taking Monday but Indian brokerage Emkay forecast the currency could drop to 60 if weak economic growth persists.

"The Indian rupee's weakness is a symptom and not the underlying problem", which is "policy incoherence, shifting global risk appetite and a comatose government", said Rajeev Malik, senior economist at independent brokerage CLSA.

Ratings agency Standard and Poor's has cut India's credit outlook to negative, growth is slowing and the current account deficit -- the widest measure of a country's trade with the rest of the world -- is at a three-decade high.

http://www.newsmeat.com/news/meat.php?a ... &buid=3281
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Re: INR

Postby winston » Wed May 30, 2012 8:45 am

India seeks to prop up rupee by boosting capital inflows

India on Tuesday said it was relaxing foreign investment rules in a move to bring in more capital to support the battered rupee.

The government said residents of Gulf nations and all European Union countries can invest directly in stock markets. Individual overseas investors will also be allowed to plow up to $1 billion into the debt market.

The relaxation in overseas investment norms for individual investors is aimed at "enhancing the flow of foreign capital into India," the finance ministry said in a statement.

http://www.newsmeat.com/news/meat.php?a ... &buid=3281
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Re: INR

Postby winston » Tue Sep 18, 2012 10:47 pm

Will the Indian Rupee Stage a Big Turnaround in 2012 ? By: Ansuya Harjani

The Indian rupee has been among the major beneficiaries of the government’s latest economic reform efforts – gaining over 2 percent against the dollar over the past week – and analysts say this may trigger a greater rebound in the beleaguered currency, which could rise as much as 8 percent by the year-end.

A combination of positive domestic drivers alongside an improvement in global liquidity conditions, as a result of easing by central banks in the West, will drive the currency higher this year, say experts.

http://www.cnbc.com/id/49069159
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Re: INR

Postby winston » Sat Jul 06, 2013 11:54 am

The Indian rupee.

The rupee reached all-time lows versus the U.S. dollar in recent weeks, due to broader concerns over emerging market currencies as well as India’s large current account deficit.

The latter issue seems overblown, particularly after India recorded a large reduction in the deficit in the first quarter of this year.

This news, released during the past week, has helped the currency recover somewhat but there should be more to come.

Yes, India has problems but they’re well known. There are a number fundamental positives which are being currently ignored, such as extensive reform in the previously dysfunctional power sector, the emergence of pro-business leaders in several key states and caps on subsidies such as fertiliser (subsidies have been a key reason for inflationary pressures).

This suggests that India is in a bit better shape than the currency markets given it credit for.


Source: Forbes
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Re: INR

Postby winston » Sat Aug 03, 2013 8:43 pm

India's central bank 'intervened to rescue rupee'

AFP - India's central Reserve Bank of India was believed to have intervened in the foreign exchange market Friday to rescue the rupee from near-record low levels, dealers said.

"The RBI is believed to have sold dollars at around 61.12 levels," said a dealer at a Mumbai forex outfit, asking not to be named.

The currency recovered briefly to 60.89 levels but slipped again to end at its lowest-ever closing of 61.10, dealers said.

The rupee, Asia's worst performing major currency this year, hit a lifetime low of 61.21 to the dollar last month in intraday trade.

Slackening domestic growth, weak exports, rising foreign fund outflows and India's high current account deficit have battered the rupee.

Demand for the dollar has also increased amid expectations of a sooner-than-expected scaling back of US stimulus as the American economy recovers, analysts said.

"The rupee remains in a very bearish state. Until the government takes steps to boost capital flows into India, the situation will not improve," said Param Sarma, chief executive of NSP Forex.

Analysts fear that the currency could fall to the 62 rupee to the dollar level or lower in coming months if the US Fed starts to taper off its stimulus.

RBI governor Duvvuri Subbarao, in a speech in southern city of Hyderabad on Friday, said that the bank will roll back recently announced tightening measures "only after stability has been restored to the foreign exchange market".

Last month the RBI brought in a range of measures to prop up the rupee, including raising short-term interest rates and lowering the amount banks can borrow or lend under its liquidity limits.

http://www.france24.com/en/20130802-ind ... scue-rupee
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Re: INR

Postby winston » Sun Aug 18, 2013 6:25 am

India's rupee hits new record low against dollar

AFP - India's rupee plunged to a new record low against the dollar on Friday and stocks slid 2.66 percent over fears that foreign capital could flow back to the United States as the American economy improves.

The rupee, one of Asia's worst-performing currencies this year, hit a new low of 62.00 rupees to the greenback, slipping past its previous low of 61.80 rupees on August 6.

The drop in value reflects fears that recent measures by the central bank may not be able to help the ailing currency, dealers said.

http://www.france24.com/en/20130816-ind ... nst-dollar
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Re: INR

Postby winston » Tue Sep 03, 2013 7:21 pm

India's rupee falls sharply, shares slump 3.5%

India's currency fell sharply Tuesday and stocks tumbled nearly 3.5 percent in another major sell-off caused by uncertainty in the Middle East and a new gloomy economic forecast by Goldman Sachs.

http://www.france24.com/en/20130903-ind ... s-slump-35
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