Indian rupee hits all-time low

May 17, 2012

indian_rupee

New Delhi, May 17: The Indian rupee plummeted to an all time low on Wednesday to 54.46 rupees to the dollar, or up to Rs14.81 to the dirham, breaching its previous record low of 54.39 struck on December 15.

Local money exchanges witnessed “higher than normal footfalls” as non residents rushed to remit money as the rupee’s value against the dollar-pegged UAE currency declined to over 20 per cent during the past 12 months.

The Reserve Bank of India said it was closely observing the rupee’s movement and will act if needed.

Although the immediate trigger for the rupee plunge was a sudden surge in demand for dollar amid deepening uncertainty over the eurozone debt crisis, analysts blamed it on India’s deteriorating macro-economic conditions, most importantly its twin financial setbacks — current account defcit and the fiscal deficit that are among the highest among emerging Asian economies.

“In the backdrop of the Greek crisis, fiscal deficit and policy paralysis, the currency looks weaker, and could remain so for few days to come, if not more,” said Y. Sudhir Kumar Shetty, chief operating officer, Global Operations, UAE Exchange. Remittances, especially big-ticket transactions, where people send money for investments or savings, are on the rise, which is a natural outcome of currency weakening, said Shetty.

“But blue collar remittances, which are usually sent for family maintenance, maintain a steady level irrespective of the currency movements, which is discernible now. Reserve Bank of India hasn’t taken any significant corrective measures, which indicates that the currency could weaken further,” he said.

Sajith Kumar P K, director and CEO of JRG International Brokerage, said the chances are high that the rupee touch 57 to 58 levels to the dollar in the medium- to long-term basis if the prevailing situation continues. Next support levels are 55.80, 57.80 and resistance levels are 54.40, 52.20.

Kumar said urgent action from policy makers are needed at this juncture to stop a further steep fall of the currency.

“While more steps are needed to restore the confidence level of foreign institutional investors, policy makers should initiate more avenues for foreign direct investments to strengthen the rupee,” he said.

Some analysts suggest that it was time that the rupee is allowed to depreciate and left to find its own level that could slow imports and help raise exports.

“The pressure on the rupee has been mostly due to inadequate dollar supplies to meet India’s rising import bill. About 20 per cent of it is to fund its crude oil imports. India’s weak fundamentals, aggravated by imprudent subsidies, are getting increasingly exposed at a time when unfriendly tax proposals keep at bay foreign investors,” one analyst said.

India government’s lack of determination to push ahead with policy reforms had been a further deterrent to foreign investments into the country, analysts said. “The need of the hour are sound fundamentals to attract capital inflows that are needed to fund the current-account shortfall,” they said.

Foreign portfolio investors have started going slow on investments into the country. In April, they pulled out close to $1 billion from the Indian markets. On the other hand, the country’s import bill has risen due to high crude and commodity prices amid a slower growth in exports.

According to ING Vysya Bank Ltd, India’s economic fundamentals are pressuring the currency more than global factors. The trade deficit swelled to a record $184.9 billion in the year ended March 31 and industrial output shrank 3.5 per cent in March from a year earlier, government figures showed this month. Standard & Poor’s cut the outlook on the nation’s BBB- sovereign debt rating to negative on April 25.

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Agencies
April 23,2020

New Delhi, Apr 23: The nationwide lockdown in India which started about a month ago has impacted nearly 40 million internal migrants, the World Bank has said.

The lockdown in India has impacted the livelihoods of a large proportion of the country's nearly 40 million internal migrants. Around 50,000 60,000 moved from urban centers to rural areas of origin in the span of a few days, the bank said in a report released on Wednesday.

According to the report -- 'COVID-19 Crisis Through a Migration Lens' -- the magnitude of internal migration is about two-and-a-half times that of international migration.

Lockdowns, loss of employment, and social distancing prompted a chaotic and painful process of mass return for internal migrants in India and many countries in Latin America, it said.

Thus, the COVID-19 containment measures might have contributed to spreading the epidemic, the report said.

Governments need to address the challenges facing internal migrants by including them in health services and cash transfer and other social programmes, and protecting them from discrimination, it said.

World Bank said that coronavirus crisis has affected both international and internal migration in the South Asia region.

As the early phases of the crisis unfolded, many international migrants, especially from the Gulf countries, returned to countries such as India, Pakistan, and Bangladesh until travel restrictions halted these flows.

Some migrants had to be evacuated by governments, such as those of China and Iran, it said.

Before the coronavirus crisis, migrant outflows from the region were robust, the report said.

The number of recorded, primarily low-skilled emigrants from India and Pakistan rose in 2019 relative to the prior year but is expected to decline in 2020 due to the pandemic and oil price declines impacting the Gulf countries.

In India, the number of low-skilled emigrants seeking mandatory clearance for emigration rose slightly by eight percent to 368,048 in 2019.

In Pakistan, the number of emigrants jumped 63 per cent to 6,25,203 in 2019, largely due to a doubling of emigration to Saudi Arabia, it said.

According to the bank, migration flows are likely to fall, but the stock of international migrants may not decrease immediately, since migrants cannot return to their countries due to travel bans and disruption to transportation services.

In 2019, there were around 272 million international migrants.

The rate of voluntary return migration is likely to fall, except in the case of a few cross-border migration corridors in the South (such as Venezuela-Colombia, Nepal-India, Zimbabwe South Africa, Myanmar-Thailand), it said.

Migrant workers tend to be vulnerable to the loss of employment and wages during an economic crisis in their host country, more so than native-born workers.

Lockdowns in labour camps and dormitories can also increase the risk of contagion among migrant workers.

Many migrants have been stranded due to the suspension of transport services. Some host countries have granted visa extensions and temporary amnesty to migrant workers, and some have suspended the involuntary return of migrants, it said.

Observing that government policy responses to the COVID-19 crisis have largely excluded migrants and their families back home, the World Bank said there is a strong case for including migrants in the near-term health strategies of all countries, given the externalities associated with the health status of an entire population in the face of a highly contagious pandemic.

The Bank said governments would do well to consider short, medium and long-term interventions to support stranded migrants, remittance infrastructure, loss of subsistence income for families back home, and access to health, housing, education, and jobs for migrant workers in host/transit countries and their families back home.

The pandemic has also highlighted the global shortage of health professionals and an urgent need for global cooperation and long-term investments in medical training, it said.

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News Network
May 7,2020

Visakhapatnam, May 7: Unconscious children being carried by parents in their arms, people laying on roads, health workers scrambling to attend to those affected by the styrene vapour leak and residents fleeing were some of the scenes that played out near here on Thursday, bringing back grim memories of the 1984 Bhopal gas tragedy.

The leak of styrene, a chemical used to make synthetic rubber and resins, among others, occurred in the wee hours of Thursday while people were still fast asleep.

Women and children were seen lying on roads struggling to breath, reminiscent of the infamous Bhopal gas tragedy when a leak from the Union Carbide plant left around 3,500 dead and many maimed.

The worst-hit Gopalapatnam village reverberated with cries of people for help.

Many people fell unconscious during their sleep, a villager said.

Affected people, suffering writ large on their faces, were rushed to hospitals in autorickshaws and on two wheelers.

Visakhapatnam Collector Vinay Chand said 20 ambulances were pressed into service as soon information about the gas leak was received.

Exposure to styrene, also known as ethenylbenzene, vinylbenzene can affect the central nervous system (CNS), causing headache, fatigue, weakness, and depression.

It is primarily used in the production of polystyrene plastics and resins.

The gas leak took place at LG Polymers chemical plant.

LG Polymers was established in 1961 as "Hindustan Polymers" for manufacturing Polystyrene and its co-polymers at Visakhapatnam. It merged with McDowell & Co. Ltd of UB Group in 1978, according to the company's website.

Taken over by LG Chem (South Korea), Hindustan Polymers was renamed LG Polymers India Private Limited (LGPI) in July, 1997.

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News Network
April 19,2020

Shimla, Apr 19: A man, who had recovered from the novel coronavirus, was again found suffering from the infection in Himachal Pradesh, officials said.

The man, a Tablighi Jamaat member, tested positive for the infection on Saturday within a week of his two reports coming out negative, they said.

Residents of different places in Mandi district, the man along with two other Jamaatis had been staying in a mosque of Nakroh village in Una'a Amb tehsil and all tested positive on April 2.

They were admitted to Tanda's Dr. Rajendra Prasad Government Medical College (RPGMC) in Kangra district on April 3.

As per the available information, they had tested negative for the first time on April 10 and they were declared as cured as per protocol after they tested negative for the second time on April 12.

Subsequently they had been discharged from the RPGMC and were kept in institutional quarantine.

However, with the man again testing positive, the total number of active cases in the hill state has increased to 23 out of the total 40 positive cases.

Four persons have been shifted to a private hospital outside the state. Eleven have recovered while two others have died.

A total of 16 confirmed cases were found in Una and health department statistics now shows 14 active cases and two cured.

Officials said 11 patients — three each from Chamba, Kangra, and Solan districts and two from Una district — have recovered.

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