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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Agencies
June 15,2020

New Delhi, Jun 15: Average temperature of India experienced a rise of 0.7 degree Celsius, along with decline in rainfall, significant increase in frequency of very severe cyclonic storms and droughts in over a decade due to human activities, the Ministry of Earth Sciences in its research report said.

The contentions were made in a report issued by the ministry on the impact of climate change. It will be published by Union Minister Harsh Vardhan on June 19.

According to the report, "Since the middle of the twentieth century, India witnessed rise in temperature; decrease in monsoon; rise in extreme temperature and rainfall, droughts, and sea levels; and increase intensity of severe cyclones.

The report, prepared by researchers of the Centre for Climate Change Research, a cell under The Ministry's Indian Institute of Tropical Meteorology, Pune, further stated that there is compelling scientific evidence that human activities have influenced these changes in regional climate.

India's average temperature has risen by around 0.7 degrees Celsius during 1901-2018, it said, adding that the rise is largely on account of GHG-induced warming and partially offset by forcing due to anthropogenic aerosols.

It states that the average temperature over India is projected to rise by 4.4 degrees Celsius, while the intensity of heat waves is likely to increase by 3-4 times by the end of the century.

In the 30-year period between 1986 and 2015, temperatures of the warmest day and the coldest night of the year have risen by about 0.63 degrees Celsius and 0.4 degree Celsius.

According to the report, by the end of the century, the temperatures of the warmest day and the coldest night are projected to rise by approximately 4.7 degrees Celsius and 5.5 degrees Celsius, respectively.

Alarmingly, sea surface temperature of the tropical Indian Ocean has also risen by one degrees Celsius on average during 1951-2015.

"The frequency of very severe cyclonic storms during the post-monsoon season has increased significantly (+1 event per decade) during the last two decades (2000-2018)," it added.

This came in the backdrop of Cyclone 'Amphan' and 'Nisarga' which made landfalls on May 20 and June 3 and killed several people, flattened villages, and destroyed farms.

"This is the first-ever climate change assessment report for India. This report will be very useful for policy makers, researchers, social scientists, economists, and students," said M. Rajeevan, secretary, the Ministry of Earth Sciences.

Besides this, the report also highlighted various other unnerving data on climate change in the country. Both the frequency and extent of droughts have increased significantly during 1951-2016.

The overall decrease of seasonal "summer monsoon rainfall" during the last 6-7 decades has led to an increased propensity for droughts over India.

"In particular, areas over central India, southwest coast, southern peninsula and north-eastern India have experienced more than 2 droughts per decade, on average, during this period. The area affected by drought has also increased by 1.3 per cent per decade over the same period."

The Hindu Kush Himalayas (HKH) also experienced a temperature rise of about 1.3 degree Celsius during 1951-2014.

Several areas of the Himalayas have experienced a declining trend in snowfall and also retreat of glaciers in recent decades. By the end of the twenty-first century, its annual mean surface temperature is projected to increase by about 5.2 degree Celsius.

The summer monsoon precipitation from June to September over India has also declined by around 6 per cent from 1951 to 2015, with notable decreases over the Indo-Gangetic Plains and the Western Ghats, the report further states.

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News Network
March 12,2020

New Delhi, Mar 12: TMC MP Saugata Roy said Home Minister Amit Shah should resign for "failing" to control the riots in Delhi and demanded a judicial inquiry by a sitting Supreme Court judge.

Participating in a discussion on the violence in Delhi in Lok Sabha, Roy said the Delhi riots happened 72 years after Mahatma Gandhi was killed by a Hindu fanatic.

"Gandhiji has been murdered again in Delhi by, you know who," Roy said while addressing the Chair.

Taking on BJP MP Meenakshi Lekhi for defending BJP leaders for their controversial remarks, which he claimed instigated the violence, Roy said he has seldom heard such a communal speech ever.

Dubbing the BJP MP as "Devil's Advocate", Roy said, "She spent five minutes defending the most hated man. May I quote (William) Shakespeare and call her the Devil's Advocate?...She is the best Devil's Advocate possible. She has also been an advocate for the Delhi Police which has shown total inaction and ineptness in this whole riot in Delhi."

Thereafter Roy trained his gun at Shah, who was present in the house while the TMC MP was speaking.

He said that when the riots started on February 24, Home Minister Shah was sitting in the front row at Motera Stadium (in Gujarat) welcoming US President Donald Trump.

"When Mr. Shah should have been in Delhi Police control room, he was welcoming Mr. Trump at Motera. There was no order to the police. Then on 25th, things went out of control. Armed mobs fought with each other on the streets of Delhi," Roy said.

Demanding resignation of Shah, Roy raised questions on NSA Ajit Doval's visit to the riots-affected areas on February 26 and asked what was the Home Minister doing.

"Is it NSA's business to control ordinary law and order situation? Why was the Home Minister absent in action? There is no explanation for the same," he said.

The TMC leader said he feels bad standing face-to-face with Shah.

"He is still young, he has a good future. He should acknowledge responsibility for his failure to control or stop Delhi riots and bring peace in three days. In the name of God, go and do not stay in the Home Minister's position," Roy said, adding he is the man who could not prevent riots in Delhi, at a place 10 kilometres away from the Home Ministry.

Roy demanded a judicial inquiry into the riots by a sitting Supreme Court judge and complete rehabilitation for all the riot victims.

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News Network
April 25,2020

New Delhi, Apr 25: With 1,429 more COVID-19 cases reported in the last 24 hours, India's count of coronavirus cases has reached 24,506, said Ministry of Health and Family Welfare on Friday.

Out of these, 18,668 patients are active cases and 5063 cases have been cured, discharged, or migrated.

The death toll stands at 775, with as many as 57 deaths reported in the last 24 hours.

According to the morning update by the ministry, Maharashtra continues to be the worst-hit State with 6,817 cases of which 840 patients have recovered and 301 patients have died.

Gujarat now stands in the second spot with 2,815 cases, of which 265 have recovered and 127 people have died. Meanwhile, Delhi's count stands at 2,514 of which 857 patients have recovered, while 53 patients have lost their lives.

Tamil Nadu's COVID-19 figure stands at 1,755 with 866 patients recovered and 22 fatalities. Rajasthan has reported 2,034 cases of which 230 have recovered and 27 patients are dead.

Madhya Pradesh has reported 1,852 positive cases so far of which 210 patients have recovered and 92 patients have lost their lives due to the virus. In Uttar Pradesh, as many as 1,621 people have confirmed COVID-19, of which 247 recovered and 25 people have succumbed to it.

In Kerala, which reported the country's first COVID-19 case, 450 people have been detected positive for coronavirus.

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