Indian Rupee depreciation against Dollar
- Thread starter sob
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Rupee back to 56 level, notches biggest one day gain in 3 years. Yusuf should be happy unless he has already made the payment with the older rate 
Rupee gains most in 3 years as risk assets rally | Reuters
Rupee gains most in 3 years as risk assets rally | Reuters
Rupee surges to six-week high
Mumbai, July 3: The rupee today surged 105 paise to settle at a six-week high of 54.39 against the dollar on the back of strong inflows and improved market sentiment.
Recent developments in India and overseas have tilted the preference towards riskier assets such as equities among foreigners. While last week's EU summit boosted sentiments globally, inflows from foreign institutional investors (FIIs) have been strong because of changes in the finance ministry.
There is widespread optimism that reform measures are on the way with Prime Minister Manmohan Singh taking over the reins of the finance ministry. Data from the Securities and Exchange Board of India show that the FIIs were net purchasers of domestic equities amounting to Rs 3,895 crore yesterday.
Mumbai, July 3: The rupee today surged 105 paise to settle at a six-week high of 54.39 against the dollar on the back of strong inflows and improved market sentiment.
Recent developments in India and overseas have tilted the preference towards riskier assets such as equities among foreigners. While last week's EU summit boosted sentiments globally, inflows from foreign institutional investors (FIIs) have been strong because of changes in the finance ministry.
There is widespread optimism that reform measures are on the way with Prime Minister Manmohan Singh taking over the reins of the finance ministry. Data from the Securities and Exchange Board of India show that the FIIs were net purchasers of domestic equities amounting to Rs 3,895 crore yesterday.
sob
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Rupee to touch 50-mark against dollar in 2-4 months: Govt
NEW DELHI: The government on Friday said the rupee could touch the 50-mark to a dollar in the next four months on the back of strong inflow of foreign currency.
"If rupee further strengthens, which we hope it will, with the steps the government is taking, we expect it could even touch 50 in the next 2-3 months or four months," Department of Economic Affairs secretary Arvind Mayaram told reporters here.
The rupee today rose to an over five-month high of 52.49 against the dollar on strong capital inflows and hopes of more policy reforms. The local currency ended the day at 52.85.
"Now there is a much better foreign exchange management in terms of flows on account of decision that the government has taken in the last 2-3 weeks. We expect higher FDI flows to come into the country. So the pressure on the rupee is decreasing to that extent," Mayaram said.
Earlier this month, the government has taken a slew of reform initiatives like opening up the multi-brand retail chains to foreign direct investment (FDI) and allowing foreign carriers to pick up stake in domestic airlines. Besides, liberalising FDI norms for the broadcasting sector.
Mayaram said the appreciation of rupee would help cutting down the subsidy bill and cool down inflation, which stood at 7.55 per cent in August.
"(If the rupee strengthen) our subsidy burden will go down even further," Mayaram said, adding that the positive impact of the hardening of rupee would be felt more on import of petroleum products. India imports about 80 per cent of its crude oil requirements. "We expect inflation to come down because of that (rupee weakening) ... A one rupee change gives you about eight basis points of drop in inflation," Mayaram added.
Recently, Finance Minister P Chidambaram said the subsidy bill in the current financial year is expected to rise to 2.4 per cent of the GDP from 1.9 per cent estimated in the Budget.
Besides, the fiscal deficit has also touched about 66 per cent of the budget estimates or Rs 3.38 lakh crore in the April-August period. The government had budget to bring down the deficit to 5.1 per cent of the GDP in 2012-13, from 5.76 per cent in the previous fiscal.
In order to check fuel subsidy bill, the government has raised the price of diesel by Rs 5.62 a litre and capped supply of subsidised LPG cylinders to six per family in a year.
"It is not simply in terms of cutting subsidies that you can contain fiscal deficit, (but) by better management of economy also fiscal deficit can be contained," Mayaram said.
The major subsidies, include fuel, fertiliser and food, and the government has been proposing direct cash transfer to prevent leakages.
Rupee to touch 50-mark against dollar in 2-4 months: Govt - The Economic Times
NEW DELHI: The government on Friday said the rupee could touch the 50-mark to a dollar in the next four months on the back of strong inflow of foreign currency.
"If rupee further strengthens, which we hope it will, with the steps the government is taking, we expect it could even touch 50 in the next 2-3 months or four months," Department of Economic Affairs secretary Arvind Mayaram told reporters here.
The rupee today rose to an over five-month high of 52.49 against the dollar on strong capital inflows and hopes of more policy reforms. The local currency ended the day at 52.85.
"Now there is a much better foreign exchange management in terms of flows on account of decision that the government has taken in the last 2-3 weeks. We expect higher FDI flows to come into the country. So the pressure on the rupee is decreasing to that extent," Mayaram said.
Earlier this month, the government has taken a slew of reform initiatives like opening up the multi-brand retail chains to foreign direct investment (FDI) and allowing foreign carriers to pick up stake in domestic airlines. Besides, liberalising FDI norms for the broadcasting sector.
Mayaram said the appreciation of rupee would help cutting down the subsidy bill and cool down inflation, which stood at 7.55 per cent in August.
"(If the rupee strengthen) our subsidy burden will go down even further," Mayaram said, adding that the positive impact of the hardening of rupee would be felt more on import of petroleum products. India imports about 80 per cent of its crude oil requirements. "We expect inflation to come down because of that (rupee weakening) ... A one rupee change gives you about eight basis points of drop in inflation," Mayaram added.
Recently, Finance Minister P Chidambaram said the subsidy bill in the current financial year is expected to rise to 2.4 per cent of the GDP from 1.9 per cent estimated in the Budget.
Besides, the fiscal deficit has also touched about 66 per cent of the budget estimates or Rs 3.38 lakh crore in the April-August period. The government had budget to bring down the deficit to 5.1 per cent of the GDP in 2012-13, from 5.76 per cent in the previous fiscal.
In order to check fuel subsidy bill, the government has raised the price of diesel by Rs 5.62 a litre and capped supply of subsidised LPG cylinders to six per family in a year.
"It is not simply in terms of cutting subsidies that you can contain fiscal deficit, (but) by better management of economy also fiscal deficit can be contained," Mayaram said.
The major subsidies, include fuel, fertiliser and food, and the government has been proposing direct cash transfer to prevent leakages.
Rupee to touch 50-mark against dollar in 2-4 months: Govt - The Economic Times
this is the result of recent annoucements, that's why the opposition perties don't like these measures. they these will bring the economy back and rupee will strengthen. they have pounced the GOI for poorer rupee, now what are they going to say ?
average american
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Can any one tell me why if the USA is going broke there is a Indian Rupee depreciation against Dollar. I dont understand all this high finance stuff.
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depreciation against the USD is good for exports.
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Rupee depreciation has more to do with India economic state rather than American economic state.
sob
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In our case it is not good because our current account deficit. Our import bill ( mainly Oil and Gold) is way higher than our exports. So we need a stronger Rs. to keep a lid on our imports.
sob
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Result of Rs. appreciation
Gold importers accumulate bargains as prices fall - The Economic Times
"Demand is good as rates are reasonable. People are worried that prices could hit 32,500 in December," said Harshad Ajmera, proprietor of Kolkata-based wholesaler JJ Gold House.
Gold importers accumulate bargains as prices fall - The Economic Times
"Demand is good as rates are reasonable. People are worried that prices could hit 32,500 in December," said Harshad Ajmera, proprietor of Kolkata-based wholesaler JJ Gold House.
