Ummid Assistant

Jamia Millia launches courses on China, Afghanistan

IGNOU launches value education programme for teachers

Welcome Guest! You are here: Home » Business & Economy

Rupee hits new low for third straight session

Wednesday December 14, 2011 08:52:12 PM, IANS

Related Article

Rupee plunges to another all-time low

The slide in the Indian rupee continued Tuesday, dropping to another all-time low at 53.21 per dollar intra-day due to fears over a slowdown in the domestic economy and cascading effect of the sovereign debt crisis in Eurozone.  »

Rupee falls below 52 against dollar

New Delhi: The Indian rupee fell to a record low Wednesday at 53.88 to a dollar on increased demand for the US currency from importers and gloomy outlook for the global economy owing mainly to the debt crisis in eurozone.

This is the third consecutive day which has seen the rupee falling to new lows.

The Indian currency recovered from the low hit in morning trade, but traded below the 53-a dollar level through the day before closing at 53.70 per dollar. The weakness in the equities markets also put pressure on the currency.

Foreign institutional investors, in fact, sold stocks worth $91.66 million Wednesday, according to data available with the Securities and Exchange Board of India (SEBI).

Traders expect rupee to depreciate further to about 54-56 rupees to a dollar in the near term.

A depreciating rupee makes imports costlier, and has a major impact on the country's oil bill by putting pressure on retailers to hike prices of at least de-regulated fuels like petrol and aviation turbine fuel. This adds to the inflationary pressures.

Finance Minister Pranab Mukherjee said while excessive capital inflows in the aftermath of global economic crisis led to sharp appreciation in the value of Indian currency, the reversal has now caused a sharp depreciation.

"We have witnessed sharp depreciation of the rupee vis-a-vis the US dollar in the last few months," said Mukherjee at the Delhi Economics Conclave here.

C. Rangarajan, the chairman of the Prime Minister's Economic Advisory Council and a former RBI governor, said the central bank could intervene to combat fluctuations in the currency if the factors affecting it were from within the country.

"If the behaviour of Indian rupee is because of certain factors which generate in the Indian economy, then we can use the foreign exchange reserves to control the volatility," Rangarajan said adding that the reasons for the current depreciation were external economic conditions and an increasing capital account deficit.

In the past four months, the rupee has lost more than 19 percent as India's imports started far outweighing its exports. The current account deficit which is the difference between a country's imports of goods, services and its exports has widened to over 3 percent of the gross domestic product.

Many of the country's import-dependent sectors will see costs going up if the rupee doesn't stabilise in the near future.

But analysts are hoping for some intervention from the central bank like it did in September and October.

The RBI had sold dollars worth $845 million and $943 million in September and October, respectively, to support the currency, according to data available with the central bank.





 

 

 

 

 

Bookmark and Share

Home | Top of the Page

Comments

Note: By posting your comments here you agree to the terms and conditions of www.ummid.com

Comments powered by DISQUS

i

i

 

 

 

Top Stories

Government okays key anti-graft bills to counter Anna threat

Pushed into a corner by an aggressive opposition and the looming threat of Anna Hazare, the government Tuesday okayed a slew of anti-graft bills to tackle corruption at high places, including in the judiciary.  »

Congress faces opposition from allies over crucial decisions

'PM, Group C employees may be brought under Lokpal ambit'

 

  Most Read

The Bhujbals triumph

As Maharashtra completed the first round of civic elections with the Cong-NCP combine stamping a convincing victory, the one district results of which were keenly awaited by friends and foes alike was Nashik. For, here the elections were fought not only among the known rivals but an  »

Congress to NDA: Declare you have no illegal assets in India

The Congress Wednesday asked members of the opposition National Democratic Alliance (NDA) combine to declare that they have no illegal assets in India after in a similar declaration they pledged they had no illegal wealth in foreign banks.  »

NDA MPs to give 'no black money' declaration next week

 

  News Pick

US scientist constitutes award for AMU students

Dr. Sultana N. Nahar of the Ohio State University, USA today presented two awards with a cash prize of $150 to each best Muslim students with highest scores  »

Don't participate in London Olympics: Aslam Sher Khan

India should not participate in the London Olympics-2012 if Dow Chemicals was retained as the event's sponsor, newly elected Olympian Association of India (OAI) president Aslam Sher Khan said Wednesday. Khan  »

Raise alcohol prices to save lives: British doctors

British doctors have urged the government to raise prices of alcohol so that thousands of lives, including those of "harmful drinkers and young people", could be saved.  »

Farooq favours re-opening of cinemas, liquor shops

 

Picture of the Day

The main pavilion at Kingsway Camp in 1911 erected for the former British royalty for the coronation durbar. Three days after the coronation durbar, the foundation of the new city was laid Dec 15, 1911. The city was named New Delhi in 1927 and was formally inaugurated Feb 13, 1931.

 

 
 
 
 
 

RSS  |  Contact us

 

| Quick links

News

 

Subscribe to

Ummid Assistant

 

National

Religion

RSS

Scholarships

About us

International

Culture

Twitter

Government Schemes

Feedback

Regional

History

Facebook

Education

Register

Politics

Opinion

Newsletter

Contact us

Business

Career

     

Education

     

 

 

Ummid.com: Disclaimer | Terms of Use | Advertise with us | Link Exchange

Ummid.com is part of the Awaz Multimedia & Publications providing World News, News Analysis and Feature Articles on Education, Health. Politics, Technology, Sports, Entertainment, Industry etc. The articles or the views displayed on this website are for public information and in no way describe the editorial views. The users are entitled to use this site subject to the terms and conditions mentioned.

© 2010 Awaz Multimedia & Publications. All rights reserved.