Dear All,
India will not be able to do much about the rupee's sharp fall, said Jim O'Neill, Former Chairman of Goldman Sachs AMC.
As rupee's record fall against the US dollar continues to hog the limelight, it has also lost ground and breached key levels against a host of other currencies including British pound, euro and Swiss franc.
Adding to rupee's woes, British pound today crossed Rs 106 level, euro went past Rs 92, Swiss franc touched Rs 75 mark, Canadian dollar was at Rs 65, Australian dollar at over Rs 60, while New Zealand dollar, Singapore dollar, Bruneian dollar and Libyan dinar crossed Rs 50 level.
Among even more expensive foreign currencies, one Kuwaiti dinar is now worth more than Rs 240, Bahraini Dinar over Rs 180, Omani rial has went past Rs 175 and Latvia Lat at Rs 130.
Against the most prominent foreign currency US dollar, the rupee has fallen to a record low of Rs 68.75.
An analysis of foreign exchange rates across the world shows that Kuwaiti dinar is the most expensive against the rupee at current level of close to Rs 243, followed by Bahraini dinar (Rs 182), Omani rial (Rs 178) and Latvian lat (Rs 130).
Among the major foreign currencies, British pound is the most expensive and hit a record high of Rs 106.91 this afternoon, followed by euro, Swiss franc, US dollar, Canadian dollar and Australian dollar.
The Asian economies have already been under stress on speculation that US Federal Reserve will sooner than later start curbing stimulus leading to money flowing out of these economies.
The government measure came in too late and were not been appreciated by the market. It forced the government to come out with host of steps in all directions. The measures seen as a desperate act ahead of general elections next year are proving counterproductive
The passage of Food Security Bill in the Lok Sabha couldn't have come at more inappropriate time. The market is worried that it will further burden the government's finance. It's a play of weak fundamentals and even weaker sentiment.
Meanwhile BNP Paribas has sharply cut India's GDP forecast to 3.7 percent for fiscal 2014 from 5.2 percent previously. The new forecast, if met, would mark India's lowest growth since fiscal 1992. According to BNP Paribas, RBI's cash draining measures have increased risks to economic growth at a time when the economy was already slowing sharply over the summer.
>>> NIFTY <<<
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Nifty unable to hold 5254 as said yesterday. Gap down opening on Nifty in the early morning trade wiped out all support. A Sharp recovery on the later part of the trade raise hope for the expiry tomorrow. Lets See.
>>> BHEL <<<
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BHEL - after breaking form the falling wedge, looking for a good upmove. Lets see.
