28-08-2013, 03:04 PM
India is worse than Indonesia in the battle of currency...
Indian rupee hits record low in biggest fall in 18 years
MUMBAI/NEW DELHI – The Indian rupee hit a record low and posted its biggest percentage fall in 18 years on Tuesday after parliament’s approval of a US$20 billion (S$25.7 billion) plan to provide cheap grain to the poor renewed doubts about government resolve to control spending ahead of elections due next year.
The alarm over India’s fiscal deficit eclipsed an announcement by Finance Minister P. Chidambaram that the government had approved infrastructure projects worth 1.83 trillion rupees (S$35.5 billion), a step aimed at reviving economic growth and shoring up investor confidence.
Instead, the rupee plumbed new depths while shares plunged after Mr Chidambaram spoke as his promise that the government will meet its fiscal deficit target failed to turn sentiment.
“I have already said that 4.8 per cent of GDP and the absolute number that was indicated in the budget is a red line. The red line will not be breached,” Mr Chidambaram told a news conference. “I think we’ll simply have to be patient, be firm, do whatever is required to be done, and the rupee will find its appropriate level.”
Traders said the currency market was working in a climate of fear as repeated efforts by authorities to turn the markets around failed to have a holding impact.
The rupee has lost 17 per cent against the dollar so far this year - making it the worst performer by far among Asian emerging market currencies tracked by Reuters - despite frantic attempts by the government and central bank to support it and repeated comments by the finance minister that the rupee is oversold.
The partially convertible rupee slumped to a record low of 66.30 to the dollar, despite central bank intervention to ease the pace of the decline, surpassing its previous all-time low of 65.56 hit last Thursday.
The currency fell 2.9 per cent on the day to close at 66.24/25, its biggest single-day percentage fall since October 1995 according to Thomson Reuters data and its biggest fall ever in absolute terms.
Shares also slumped, sending the benchmark BSE index down more than 3 per cent.
http://www.todayonline.com/business/indi...l-18-years
Further action after the falling of rupee...
India approves S$35.5b worth of projects to revive economic growth
NEW DELHI — The Indian government said yesterday it had approved a raft of infrastructure projects worth 1.83 trillion rupees (S$35.5 billion) to revive economic growth and restore investor confidence.
“The message that we are sending is that the investment cycle has restarted, and we are pushing it. It is gathering pace,” Finance Minister P Chidambaram told a news conference to announce the kick-start for 36 stalled projects in sectors from oil, gas and power to roads and railways. He said a Cabinet panel had cleared 18 power projects worth 830 billion rupees.
The news came yesterday when the partially convertible rupee slumped to a record low of 66.30 to the dollar, surpassing its previous all-time low of 65.56 hit last Thursday. The currency fell 2.9 per cent on the day to close at 66.24/25, its biggest single-day percentage fall since October 1995, according to Thomson Reuters data, and its biggest fall ever in absolute terms.
Dealers said the currency was partly depressed by concerns over the approval of a plan to provide cheap grain to the poor at a cost of nearly US$20 billion (S$25.7 billion). The landmark food security Bill, which was approved by the Lower House of Parliament on Monday night, proposes to reach more than 800 million people across India.
http://www.todayonline.com/chinaindia/in...mic-growth
Indian rupee hits record low in biggest fall in 18 years
MUMBAI/NEW DELHI – The Indian rupee hit a record low and posted its biggest percentage fall in 18 years on Tuesday after parliament’s approval of a US$20 billion (S$25.7 billion) plan to provide cheap grain to the poor renewed doubts about government resolve to control spending ahead of elections due next year.
The alarm over India’s fiscal deficit eclipsed an announcement by Finance Minister P. Chidambaram that the government had approved infrastructure projects worth 1.83 trillion rupees (S$35.5 billion), a step aimed at reviving economic growth and shoring up investor confidence.
Instead, the rupee plumbed new depths while shares plunged after Mr Chidambaram spoke as his promise that the government will meet its fiscal deficit target failed to turn sentiment.
“I have already said that 4.8 per cent of GDP and the absolute number that was indicated in the budget is a red line. The red line will not be breached,” Mr Chidambaram told a news conference. “I think we’ll simply have to be patient, be firm, do whatever is required to be done, and the rupee will find its appropriate level.”
Traders said the currency market was working in a climate of fear as repeated efforts by authorities to turn the markets around failed to have a holding impact.
The rupee has lost 17 per cent against the dollar so far this year - making it the worst performer by far among Asian emerging market currencies tracked by Reuters - despite frantic attempts by the government and central bank to support it and repeated comments by the finance minister that the rupee is oversold.
The partially convertible rupee slumped to a record low of 66.30 to the dollar, despite central bank intervention to ease the pace of the decline, surpassing its previous all-time low of 65.56 hit last Thursday.
The currency fell 2.9 per cent on the day to close at 66.24/25, its biggest single-day percentage fall since October 1995 according to Thomson Reuters data and its biggest fall ever in absolute terms.
Shares also slumped, sending the benchmark BSE index down more than 3 per cent.
http://www.todayonline.com/business/indi...l-18-years
Further action after the falling of rupee...
India approves S$35.5b worth of projects to revive economic growth
NEW DELHI — The Indian government said yesterday it had approved a raft of infrastructure projects worth 1.83 trillion rupees (S$35.5 billion) to revive economic growth and restore investor confidence.
“The message that we are sending is that the investment cycle has restarted, and we are pushing it. It is gathering pace,” Finance Minister P Chidambaram told a news conference to announce the kick-start for 36 stalled projects in sectors from oil, gas and power to roads and railways. He said a Cabinet panel had cleared 18 power projects worth 830 billion rupees.
The news came yesterday when the partially convertible rupee slumped to a record low of 66.30 to the dollar, surpassing its previous all-time low of 65.56 hit last Thursday. The currency fell 2.9 per cent on the day to close at 66.24/25, its biggest single-day percentage fall since October 1995, according to Thomson Reuters data, and its biggest fall ever in absolute terms.
Dealers said the currency was partly depressed by concerns over the approval of a plan to provide cheap grain to the poor at a cost of nearly US$20 billion (S$25.7 billion). The landmark food security Bill, which was approved by the Lower House of Parliament on Monday night, proposes to reach more than 800 million people across India.
http://www.todayonline.com/chinaindia/in...mic-growth