`END OF D WAIT foR ACHE DIN Rupee Touches A Low Of 13 Months The rupee fell to a low of 13 months following a steep rate hike in Russia as markets in the region also suffered badly. India’s burgeoning trade deficit raises concerns about global economy. The rupee fell to a low of 13 months following a steep rate hike in Russia as markets in the region also suffered badly. This raises more concerns about the global economy when India’s trade deficit is burgeoning. Tumbling oil prices and a downbeat China factory survey weighed on Asian shares , while the rouble rose after Russia increased its benchmark interest rate to avoid a collapse of its currency. The developments come after a recent data signaled India’s widening trade deficit to an 18-month high in November. The rupee’s session low of 63.46 on Tuesday was its weakest against the Dollar since Nov 13, 2013, when India was in the midst of its worst currency turmoil since the 1991 balance of payment crisis. But efforts by the government and the central bank to narrow the current account deficit and the election of Prime Minister Narendra Modi have sparked a sharp turnaround: foreign investors have purchased a net $43.4 billion in shares and bonds this year, allowing India to outperform most emerging markets. The volatility in global markets is now bound to test India’s appeal at a time of high hopes the Reserve Bank of India would cut interest rates as early as at its next policy review in February.
Posted on: Wed, 17 Dec 2014 15:40:25 +0000
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