Rupee marks lowest level as investors flee

May 22, 2012

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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.

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News Network
January 31,2020

New Delhi, Jan 31: Slamming the BJP over the Jamia firing incident, Congress leader Priyanka Gandhi Vadra on Friday said such incidents were possible with the ruling party's leaders inciting people to shoot, and asked Prime minister Narendra Modi to answer whether he stands with violence or non-violence.   

Her attack on the government comes a day after tensions in the Jamia area spiralled on Thursday after a man fired a pistol at a group of anti-CAA protesters, injuring a student, before walking away while waving the firearm above his head and shouting "Yeh lo aazadi" amid heavy police presence in the area.

"When the BJP government ministers and party leaders incite people to shoot, give provocative speeches, then all this becomes possible. The Prime Minister should answer what kind of a Delhi he wants to build?" Priyanka Gandhi said in a tweet in Hindi.

Does the PM stand with violence or non-violence, she asked.

"Does he stand with development or with anarchy?" the Congress general secretary said.

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News Network
January 3,2020

Dhaka, Jan 3: Bangladesh's paramilitary force chief said on Thursday that a total of 445 Bangladeshi nationals returned from India in last two months following the publication of the National Register of Citizens (NRC) by the Indian government.

Border Guard Bangladesh (BGB) Director General Maj Gen Md Shafeenul Islam disclosed the figure during a press briefing here.

"About 1,000 people were arrested in 2019 for illegal border crossings from India to Bangladesh, with 445 of them returning home in November and December," he said.

After verifying their identities through local representatives, BGB came to know that all the intruders are Bangladeshis, Islam said, adding that 253 cases were lodged against them for illegal trespass, while initial investigations found that at least three of them were human traffickers.

The BGB Director said the trespassing did not create any tension between the border forces of Bangladesh and India.

Last week, Islam visited India where he said that the creation of the NRC is completely an "internal affair" of India and the cooperation between the border guarding forces of the two countries is very good.

He said the BGB will continue to do its work of preventing illegal border crossings as per its mandate.

A BGB delegation, led by Islam, was on a bilateral visit to India to hold DG-level border talks with its counterparts, the Border Security Force (BSF).

The talks took place from December 26-29, during which a host of issues related to cross-border smuggling and activities of criminals and others along the 4,096-km-long front were discussed.

Responding to a question, Islam said, "No discussion was held at the conference over the (NRC) issue".

He said during the five-day talks held in New Delhi, the BGB demanded that the BSF should take effective steps to prevent killings of Bangladeshis on frontiers as casualty figures sharply rose in 2019.

"The number of border killings in 2019 was highest in the last four years. As per our calculation, the number of such unexpected deaths was 35," the BGB chief said.

However, the BSF estimate of the casualty figure is much lower than our calculation, he said.

Islam said the BSF is following the policy of maintaining maximum restraint and minimal use of force even after being attacked by "armed border offenders".

A statement issued by the BSF last month in New Delhi after the conclusion of the DG-level talks said, "On the concern of the BGB regarding the death of Bangladeshi nationals on borders, it was informed to them that a non-lethal weapon policy is strictly followed by BSF personnel on borders.

"Firing is resorted to only in self-defence, when BSF patrols are gheraoed and attacked by ‘dah’ (a sharp-edged weapon) etc. It was specified that the BSF does not discriminate between criminals based on nationality," it said.

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News Network
June 13,2020

New Delhi, Jun 13: About 56 per cent of children were found to have no access to smartphones which have emerged as essential tools for online learning during the coronavirus-induced lockdown, according to a new study that surveyed 42,831 students at various school levels.

The study ''Scenario amidst COVID 19 - Onground Situations and Possible Solutions'' was conducted by child rights NGO Smile Foundation with an aim of analysing the access to technology.

The findings of the study showed that 43.99 per cent of surveyed children have access to smartphones and another 43.99 per cent of students have access to basic phones while 12.02 per cent do not have access to either smartphones or basic phones.

A total of 56.01 per cent children were found to have no access to smartphones, the study said.

"Concerning television, it was noted that while 68.99 per cent have access to TV, a major chunk of 31.01 per cent does not. Hence suggesting that using smartphone interventions for enhancing learning outcomes is not the only solution," it said.

At the primary level of education (class 1 to 5) 19,576 children were surveyed while at upper primary level (class 6 to 8) 12,277 children were surveyed. At secondary level of education (class 9 to 10) 5,537 children were surveyed and at higher secondary level (class 11 to 12) 3,216 children were surveyed.

The survey based on which the study was conducted used two approaches - over the telephone wherein the NGO reached out to the children whose database it already had -- students enrolled in various education centres of the NGO -- and second was through community mobilization wherein community workers went door to door to get answers.

The survey was conducted in 23 states, including Delhi, Gujarat, Maharashtra, Karnataka, Tamil Nadu, West Bengal, Andhra Pradesh, Telangana, Uttar Pradesh, Haryana, over a period of 12 days from April 16 to April 28.

The lockdown induced by the COVID-19 pandemic in March prompted schools and colleges to move to the virtual world for teaching and learning activities. However, many experts say the digital divide in the country may turn online classes into an operational nightmare.

As per official statistics, there are over 35 crore students in the country. However, it is not clear as to how many of them have access to digital devices and Internet.

Santanu Mishra, co-founder and executive trustee, Smile Foundation, said the findings clearly show that the digital divide is a real challenge, and multiple approaches need to be implemented to cater to all across the nation.

"As an exercise before we start any programme, we do a baseline study to understand the on-ground challenges so that our programmes can bring in real work and real change. With the onset of the pandemic, following indefinite school closures, it is more important than ever to understand the situation and how can we ensure that children are given quality education. Through this, we understand that customized modules need to be built in accordance with the channel of communication," he said.  

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