Rupee marks lowest level as investors flee

May 22, 2012

rupee_100x00

Mumbai, May 22: India's rupee fell past 55 per dollar to a record low as concern Europe's debt crisis will worsen prompted investors to pull money out of emerging-market assets.

"It has been touching lows quite regularly, said Subir Gokarn, a deputy governor at the Reserve Bank of India. "There is clearly a strong pressure on the rupee to depreciate. This is coming from a number of factors. One is clearly the current account deficit, demand from oil has been strong and the capital flows are not matching that," he said.

"We have done a number of things and will continue to do things that we think will have the impact of stabilizing the currency. But ultimately capital flows are going to be the main determinant of how the currency behaves.''

Sweeping declines

The MSCI Asia-Pacific Index of shares lost 10 per cent this month as global funds pulled $6.2 billion (Dh22.76 billion) from the stock markets of India, Indonesia, South Korea and Taiwan, according to the latest exchange data.

German and French leaders meet this week to discuss a revised plan for the euro amid concern Greece is close to an exit from the monetary union. The rupee is also weakening because India's fiscal policy is "too loose" and that is widening the current-account deficit and spurring inflation, according to BNP Paribas.

"An improvement in the situation in Europe and firmer global risk appetite is a necessary, although not sufficient, condition for the rupee to stabilise," Richard Iley, the Hong- Kong based chief economist for Asia at the French bank, wrote in a research note released yesterday. "Fiscal laxity is the root of the problem."

The rupee dropped 1.1 per cent to 55.0350 per dollar in Mumbai, according to data compiled by Bloomberg. It touched an all-time low of 55.0550 and has slumped 7.6 per cent this quarter in Asia's worst currency performance.

India's budget deficit widened to 5.9 per cent of gross domestic product in the fiscal year ended March 31, compared with a target of 4.6 per cent. finance minister Pranab Mukherjee aims to narrow the shortfall to 5.1 per cent this fiscal year.

Rising volatility

The rupee's one-month implied volatility, a measure of exchange-rate swings used to price options, was unchanged at 13 per cent. It touched this year's high of 13.27 per cent on May 18.

The central bank cut the amount of overseas income companies can hold in foreign currency this month to 50 per cent from 100 per cent, in a bid to boost dollar inflows and stem the rupee's slide.

On May 4, policy makers raised interest rates on non-rupee deposits by as much as 300 basis points and freed up borrowing costs on foreign-exchange loans to exporters.

Gold: Debt crisis dims allure

Gold declined in New York as concerns that Europe's debt crisis is worsening boosted the dollar and curbed the appeal of precious metals as alternative investments.

The euro fell as much as 0.4 per cent against the dollar as German and French officials meet today to discuss ways to contain Europe's financial turmoil. Before today, gold declined 4.3 per cent this month, while the dollar climbed 3.2 per cent against a basket of six currencies.

"The flight is towards the dollar," Bart Melek, the head of commodity strategy at TD Securities in Toronto, said in a telephone interview. "The softness in the euro is keeping gold under pressure."

Gold futures for June delivery fell 0.3 per cent to $1,587.70 an ounce at 10:01 am on the Comex in New York.

Demand for bullion in India, the world's largest consumer, dropped to the weakest since late March on May 18, UBS said in an emailed report on Monday.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
July 26,2020

New Delhi, Jul 26: Union Home Minister Amit Shah on Sunday saluted the valour and grit of the Indian soldiers on the occasion of 21st anniversary of the 'Kargil Vijay Diwas'.

Shah took to Twitter and said that 'Kargil Vijay Diwas' is a symbol of India's proud, valour and steadfast leadership.

"Kargil Vijay Diwas is a symbol of India's proud, valor and steadfast leadership. I bow to the soldiers who, with their indomitable courage, drove the enemy from the inaccessible hills of Kargil and waved the tricolor there again. The country is proud of the heroes of India, who are dedicated to protecting the motherland," Shah tweeted (translated from Hindi)
The country is celebrating the anniversary of the 'Kargil Vijay Diwas'.

The Indian armed forces had defeated Pakistan on July 26, 1999. Since then, the day is celebrated as 'Kargil Vijay Diwas' to rekindle the pride and valour of the soldiers who took part in Operation Vijay.

The day marks the victory of Indian soldiers in recapturing the mountain heights that were occupied by the Pakistani Army on July 26, 1999, known as the Kargil War. 

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
May 18,2020

New Delhi, May 18: The nationwide tally of COVID-19 cases crossed one lakh on Monday with more people testing positive for the deadly virus in Maharashtra, Gujarat, Tamil Nadu and other states, even as a much-relaxed fourth phase of the lockdown began with restarting of market complexes, autos, taxis and inter-state buses in various parts of the country.

The death toll due to COVID-19 crossed the 3,000-mark too.

With an aim to reboot numerous locked down economic activities, authorities across the country ordered reopening of markets, intra-state transport services and even of barber shops and salons in some states, barring in containment zones.

However, schools, colleges, theatres, malls and religious gatherings are among those that would remain shut down, at least till May 31.

India has been under a lockdown since March 25, which was first supposed to be for 21 days or toll April 14, but was later extended till May 3, then further till May 17 and now for another two weeks till May 31.

However, a number of relaxations have been given in the current fourth phase, while states and union territories have also been granted significant flexibility for deciding the red, orange or green zones in terms of the quantum and severity of the virus spread.

In its morning 8 AM update, the Union Health Ministry put the total number of confirmed COVID-19 cases 96,169 and the death toll at 3,029.

It also said that 36,824 people have so far recovered from the infection.

However, a news agency tally of figures announced by different states and UTs as of 9.40 PM put the number of those having tested positive for the infection at 1,00,096, with a death toll of 3,078 and recoveries at 38,596 across the country.

Maharashtra topped the nationwide tally with over 35,000 confirmed cases and 1,249 deaths, followed by Tamil Nadu with 11,760 confirmed cases and 81 deaths.

Gujarat has also reported 11,746 confirmed cases, while its death toll is higher than that of Tamil Nadu at 694.

Delhi has also crossed the 10,000 mark in terms of the number of confirmed cases, while its death toll has now reached 160.

Gujarat, during the day, recorded 366 new COVID-19 cases and 35 deaths, including 31 from the worst-hit Ahmedabad, taking the state's case count to 11,746 and the number of fatalities to 694, a health department official said.

Maharashtra reported 2,033 new cases, taking the tally to 35,058.

This was the second consecutive day when the state has reported more than 2,000 COVID-19 cases.

Mumbai alone reported 1,185 fresh cases and 23 more deaths, taking the total count of the city to 21,152 and the fatalities to 757.

Of the 1,185 new cases, 300 samples were tested positive in private laboratories between May 12 and 16.

Kerala also saw 29 new cases -- all but one being returnees from overseas and other states --  raising concerns about the state witnessing a possible third wave of the dreaded virus infection.

The state was first to report the virus infection, but at least twice it has already been seen as having flattened the curve of the infection.

The nationwide count of confirmed infections incidentally crossed the crucial one-lakh mark on a day when the fourth phase of the nationwide lockdown kicked in with several relaxations for economic and public activities, barring in containment zones or areas identified as serious hotspots of the virus infection.

Revising its strategy for COVID-19 testing, ICMR also said on Monday that returnees and migrants who show symptoms for influenza-like illness will be tested for coronavirus infection within seven days of ailment and stressed that no emergency clinical procedure, including deliveries, should be delayed for lack of testing.

The Indian Council of Medical Research (ICMR) in its revised strategy for coronavirus testing in India also added that all hospitalised patients who develop symptoms for influenza-like illness (ILI) and frontline workers involved in containment and mitigation of COVID-19 having such signs will also be tested for coronavirus infection through RT-PCR test.

Besides, asymptomatic direct and high-risk contacts of a confirmed case are to be tested once between day five and day 10 of coming in contact, the new document stated.

Asymptomatic contacts of a confirmed case were being tested once between day five and day 14.

The Health Ministry also said that for every one lakh population, there are 7.1 coronavirus cases in India so far as against 60 globally.

It also said the recovery rate of coronavirus cases in India stood at 38.39 per cent.

Besides, India also joined nearly 120 countries at a crucial conference of the World Health Organisation in pushing for an impartial and comprehensive evaluation of the global response into the coronavirus crisis as well as to examine the origin of the deadly infection.

Since the first case of the deadly coronavirus was reported in China last December, more than 47 lakh people have tested for this virus across the world and over 3 lakh have lost their lives.

India is the 11th most affected country, while the US tops the chart with over 14.9 lakh confirmed cases so far.

China's official tally of confirmed infections is less than 84,000, while it has reported more than 4,600 deaths.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.
News Network
April 3,2020

New Delhi, Apr 3: The total number of coronavirus cases in Delhi has risen to 384, including 259 who were evacuated from Nizamuddin Markaz, Chief Minister Arvind Kejriwal said on Friday.

In last 24 hours, 91 new cases were reported in the national capital and one more person evacuated from the Markaz died due to coronavirus, taking the total number of deaths in the city to five, he said.

Of the 384 cases, 58 had recent foreign travel history and 38 contracted the virus after coming in contact with them, he added.

Kejriwal said community spread of the virus is not taking place in Delhi yet and there is no need to panic as the situation is under control.

The government has made preparations if the virus starts spreading among people, he said.

The chief minister also launched a WhatsApp helpline - 8800007722 for people to enquire about COVID-19, food banks, shelters among others.

Meanwhile, Kejriwal, deputy chief minister Manish Sisodia and experts will interact with students and answer their queries related to the virus at 3 pm on Saturday.

Comments

Add new comment

  • Coastaldigest.com reserves the right to delete or block any comments.
  • Coastaldigset.com is not responsible for its readers’ comments.
  • Comments that are abusive, incendiary or irrelevant are strictly prohibited.
  • Please use a genuine email ID and provide your name to avoid reject.