Imran Khan
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i am tired of these BS news man every time when its go one pessa lower then every they call it all time low all time low
Economic crisis in India 2013 | ALL Updates & News
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OrionHunter
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So why are Bangladeshis dancing with joy? 
Do they even know that our exports have now started zooming which would bring in the big bucks?? 
Do they even know that our exports have now started zooming which would bring in the big bucks?? 
BDforever
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i think it is a trick of india to increase export.
So why are Bangladeshis dancing with joy?
not with joy, just posted the news, i know the strategic value of it
Vishwamithra
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Media is a business sir. They are trying to increase the sales of their product.
SirHatesALot
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So why are Bangladeshis dancing with joy?
One mans agony is another mans Diwali.
Our media is morally corrupt and biggest A$$holes.
BDforever
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diwali is for you because now your garments industry will start challenging us
SirHatesALot
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My statement still stand correct those who import are in agony while those who export for them its Diwali.
Imran Khan
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they are doing same with pak rupee too i am tired and stop reading such BS now after every 6 moths i convert currency and see whats going on .
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China buys 140 million-kg yarn from India in two months, crisis-ridden textile industry cheers - Economic Times
http://www.business-standard.com/ar...ost-of-rupee-depreciation-113061600575_1.html
Now India is exporting and gaining lot of margins because of low rupee value
This will continue and India will earn huge profits
http://www.business-standard.com/ar...ost-of-rupee-depreciation-113061600575_1.html
Now India is exporting and gaining lot of margins because of low rupee value
This will continue and India will earn huge profits
damiendehorn
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No currency is "free floating" not even the dollar, I might say especially the dollar, all central banks set a upper and lower limits to their currency to a certain degree. That level varies between countries and blocks, the dollar has a distinct advantage over others being considered a international reserve currency.
Think of the dollar like a giant oil tanker, it needs a big wave to make it wobble. The other national, or international currencies don't have a similar status and like a smaller ship in turbulent seas will wobble more or even sink. So when natural or man made disasters, economic downturns happen, investors get jittery and pull out of certain markets, causing the currencies to fluctuate.
In case of India, this dip in the rupee is a result of multiple factors, from international to national. How ever this is a short term, correction, and a much needed one. Expect the rupee to bottom out soon, as central banks around the world begin to start buy to help stabilise the rupee including the Chinese central bank.
It's in the national interest of all nations to see a stable economy for India.
This is very bad...
Indian rupee sags to record low despite government steps | Reuters
Indian rupee sags to record low despite government steps
By Subhadip Sircar
MUMBAI | Mon Aug 19, 2013 1:47am EDT
(Reuters) - The Indian rupee fell to a record low on Monday and looked poised for further losses, with a series of measures unveiled last week failing to stall its decline.
The currency fell as far as 62.46 to the dollar in early trade, breaching the previous low of 62.03 hit on Friday.
Some dealers are expecting further dollar selling by the central bank as well as other measures to prop up a currency that is down 10.8 percent in 2013, making it the worst performer in emerging Asia.
Traders seemed unconvinced about the efficacy of steps unveiled last week to contain the current account deficit at 3.7 percent of gross domestic product (GDP) during the current fiscal year, sharply lower than the record high 4.8 percent in the previous year.
"Forex intervention will continue by the central bank. Further measures are expected from the RBI but are unlikely to be effective. The rupee is expected to touch 63 in no time," said Param Sarma, chief executive at Brokerage NSP Forex.
The partially convertible rupee closed trading at 61.65/66 last week.
Finance Secretary Arvind Mayaram told the Economic Times that the government was not looking for now at taking further steps to tackle the rupee's fall, but wanted to watch the impact of its recent measures. (link.reuters.com/fub52v)
The rupee's tumble has fuelled expectations of more action from the Reserve Bank of India (RBI), which last week curbed outflows from companies and individuals, roiling stock and bond markets on Friday. Policymakers later stepped in to assuage nerves that the government was not looking at curbing foreign money outflows.
"Our primary concern is that the policy authorities still don't 'get it' - thinking this is a fairly minor squall which will simmer down relatively quickly with fairly minor actions," Robert Prior-Wandesforde, an economist at Credit Suisse, wrote in a note on Monday.
"If this remains the case, then a swift move to 65 against the U.S. dollar is probable, which in turn should help focus minds."
The rupee has been the worst performer in Asia since late May, when the U.S. Federal Reserve first signaled that it may begin tapering its monetary stimulus this year, sparking an exodus of cheap money from emerging markets worldwide.
"The panic is overdone. Foreign exchange reserves are more than adequate. We also think inflows would gradually start to come in while the RBI will also continue to intervene in the market," said Samir Lodha, managing director at QuantArt Market Solutions, a consultancy and brokerage in Mumbai.
Net outflows from the bond and equity markets have totaled $11.4 billion since late May.
The bond market has borne the brunt of the outflows, with foreigners taking out around $10 billion since May 22.
Equity markets have remained relatively insulated with outflows from the cash market at less than $100 million on Friday, when the main stock benchmarks fell about 4 percent, the most in nearly two years. Heightened selling in equities could exacerbate the rupee's falls, dealers feared.
Mumbai's main stock index .BSESN fell 1.2 percent on Monday.
Traders in Hong Kong reported continued selling in Indian bank cash bonds as fast money increased short positions and increased protection buying widened credit default swap spreads.
Analysts also are concerned about growing bad loans in the June-quarter earnings of lenders like State Bank of India as slowing economic growth spurs defaults by companies and individuals.
State Bank of India at mid-315 basis points (bpd) has soared from end-May lows of 180 bps.
Government bond yields remained at 21-month highs with the 10-year bond at 8.95 percent, up 7 bps.
India will sell 110 billion rupees of cash management bills on Monday as part of the central bank's ongoing efforts to tighten cash.
(Additional reporting by Swati Bhat in Mumbai and Umesh Desai in Hong Kong; Editing by Tony Munroe & Kim Coghill)
Indian rupee sags to record low despite government steps | Reuters
Indian rupee sags to record low despite government steps
By Subhadip Sircar
MUMBAI | Mon Aug 19, 2013 1:47am EDT
(Reuters) - The Indian rupee fell to a record low on Monday and looked poised for further losses, with a series of measures unveiled last week failing to stall its decline.
The currency fell as far as 62.46 to the dollar in early trade, breaching the previous low of 62.03 hit on Friday.
Some dealers are expecting further dollar selling by the central bank as well as other measures to prop up a currency that is down 10.8 percent in 2013, making it the worst performer in emerging Asia.
Traders seemed unconvinced about the efficacy of steps unveiled last week to contain the current account deficit at 3.7 percent of gross domestic product (GDP) during the current fiscal year, sharply lower than the record high 4.8 percent in the previous year.
"Forex intervention will continue by the central bank. Further measures are expected from the RBI but are unlikely to be effective. The rupee is expected to touch 63 in no time," said Param Sarma, chief executive at Brokerage NSP Forex.
The partially convertible rupee closed trading at 61.65/66 last week.
Finance Secretary Arvind Mayaram told the Economic Times that the government was not looking for now at taking further steps to tackle the rupee's fall, but wanted to watch the impact of its recent measures. (link.reuters.com/fub52v)
The rupee's tumble has fuelled expectations of more action from the Reserve Bank of India (RBI), which last week curbed outflows from companies and individuals, roiling stock and bond markets on Friday. Policymakers later stepped in to assuage nerves that the government was not looking at curbing foreign money outflows.
"Our primary concern is that the policy authorities still don't 'get it' - thinking this is a fairly minor squall which will simmer down relatively quickly with fairly minor actions," Robert Prior-Wandesforde, an economist at Credit Suisse, wrote in a note on Monday.
"If this remains the case, then a swift move to 65 against the U.S. dollar is probable, which in turn should help focus minds."
The rupee has been the worst performer in Asia since late May, when the U.S. Federal Reserve first signaled that it may begin tapering its monetary stimulus this year, sparking an exodus of cheap money from emerging markets worldwide.
"The panic is overdone. Foreign exchange reserves are more than adequate. We also think inflows would gradually start to come in while the RBI will also continue to intervene in the market," said Samir Lodha, managing director at QuantArt Market Solutions, a consultancy and brokerage in Mumbai.
Net outflows from the bond and equity markets have totaled $11.4 billion since late May.
The bond market has borne the brunt of the outflows, with foreigners taking out around $10 billion since May 22.
Equity markets have remained relatively insulated with outflows from the cash market at less than $100 million on Friday, when the main stock benchmarks fell about 4 percent, the most in nearly two years. Heightened selling in equities could exacerbate the rupee's falls, dealers feared.
Mumbai's main stock index .BSESN fell 1.2 percent on Monday.
Traders in Hong Kong reported continued selling in Indian bank cash bonds as fast money increased short positions and increased protection buying widened credit default swap spreads.
Analysts also are concerned about growing bad loans in the June-quarter earnings of lenders like State Bank of India as slowing economic growth spurs defaults by companies and individuals.
State Bank of India at mid-315 basis points (bpd) has soared from end-May lows of 180 bps.
Government bond yields remained at 21-month highs with the 10-year bond at 8.95 percent, up 7 bps.
India will sell 110 billion rupees of cash management bills on Monday as part of the central bank's ongoing efforts to tighten cash.
(Additional reporting by Swati Bhat in Mumbai and Umesh Desai in Hong Kong; Editing by Tony Munroe & Kim Coghill)
India Markets Plunge Pressures Singh as Economy Teeters
India Markets Plunge Pressures Singh as Economy Teeters
India’s biggest stock market slide in almost two years, surging bond yields and an unprecedented plunge in the rupee are pressuring officials for fresh steps to stem capital outflows and revive a struggling economy.
The S&P BSE Sensex (SENSEX) Index sank 0.8 percent as of 9:43 a.m. in Mumbai, extending the 4 percent loss on Aug. 16, while the rupee touched an all-time low of 62.46 per dollar. The yield on the government bond due May 2023 rose 8 basis points to 8.98 percent, the highest on a 10-year note since 2008.
The market rout underscores the failure of months of measures to contain outflows, from higher interest rates to gold import curbs. Foreigners sold a net $3 billion of Indian stocks and bonds in July as the slowest growth in a decade made Asia’s third-largest economy vulnerable to a pullout of funds from emerging markets, spurred by speculation the U.S. Federal Reserve will cool stimulus.
“The market is questioning the effectiveness of policy makers’ moves and the options available to them,” said Priyanka Kishore, a strategist at Standard Chartered Plc in London. “Earlier, the government said it had a grand plan. This is what the market expected, but the final measures disappointed.”
The currency has weakened about 26 percent versus the dollar in the past two years. The tumble has brought back memories of the early 1990s crisis, when the government received an International Monetary Fund loan as foreign reserves waned.
Policy Concern
India won’t face a repeat of that situation as it has enough reserves for about seven months of imports, compared with 15 days back then, Prime Minister Manmohan Singh said last week.
“Our primary concern is that the policy authorities still don’t ‘get it’ –- thinking this is a fairly minor squall which will simmer down relatively quickly with fairly minor actions,” Robert Prior-Wandesforde, an economist at Credit Suisse Group AG in Singapore, wrote in a note. “If this remains the case, then a swift move to 65 against the U.S. dollar is probable, which in turn should help focus minds.”
The current-account gap widened to 4.8 percent of gross domestic product in the 12 months ended March. The Reserve Bank of India estimates the sustainable level is 2.5 percent of GDP.
“Slow growth, high inflation, a high fiscal deficit and high current-account deficit all point to the inescapable conclusion that India’s problems are deep and structural,” said Prasanna Ananthasubramanian, an economist at ICICI Securities Primary Dealership Ltd. in Mumbai.
Staunch Outflows
While other developing nations are also striving to staunch outflows, the rupee’s 12 percent fall in the past three months is the worst after the 15 percent decline in Brazil’s real in a basket of 24 emerging markets tracked by Bloomberg.
The Reserve Bank of India since mid-July has raised the marginal standing facility and bank rates, capped cash injections into the banking system and tightened lenders’ daily reserve requirements to curb the supply of rupees, seeking to shore up the currency’s value.
The government has also raised taxes on gold imports to try and narrow the trade imbalance. It plans to allow some state companies to issue quasi-sovereign bonds to garner inflows to help finance the current-account gap.
The monetary authority targeted outflows on Aug. 14, cutting the amount Indian companies can invest abroad without approval to 100 percent of their net worth from 400 percent, and saying residents can remit $75,000 each financial year compared with a previous limit of $200,000.
‘Funding Risk’
Finance Minister Palaniappan Chidambaram said last week curbs on gold and silver imports and plans to compress inward shipments of non-essential items will trim the current-account gap to $70 billion, or 3.7 percent of GDP, this fiscal year.
India will “remain exposed to funding risks” if the current-account deficit exceeds 2.5 percent of GDP and consumer-price inflation stays above 7 percent, according to Chetan Ahya, a Morgan Stanley economist in Hong Kong.
Global funds have cut holdings of rupee debt by about $10 billion since May 22, when U.S. Fed Chairman Ben S. Bernanke said $85 billion a month of debt purchases could be reduced if America’s jobs market shows sustained improvement.
India’s economy may expand 5.5 percent in the year through March 2014, compared with 5 percent in the previous 12-month period, the central bank estimates. That lags behind the 10-year average of about 8 percent as well as the performance of neighbors from Indonesia to the Philippines.
Repair Image
Singh said in a speech on Aug. 15 marking India’s Independence Day that slow growth won’t last long. Work on ports, airports, industrial corridors and rail projects will start in coming months, he said.
The premier is seeking to repair the image of his government and the ruling Congress party before elections due by May. Graft scandals, clashes with coalition partners and the risk of a credit-rating downgrade have hurt his administration.
The government began reforms in September 2012 to restrain the budget deficit and ease restrictions on foreign investment in industries from aviation to retailing.
Etihad Airways PJSC agreed in April to buy a 24 percent stake in Mumbai-based Jet Airways (India) Ltd. for 20.6 billion rupees ($334 million), taking advantage of the changes. AirAsia Bhd. in March won approval to form a venture with Mumbai-based Tata Group to set up a local low-fare airline.
The latest Indian data show conditions akin to stagflation persist. Industrial production fell 2.2 percent in June from a year earlier. Consumer prices rose 9.64 percent year-on-year in July, the second fastest in the Group of 20 major economies.
The figures underscore India’s need to address structural issues such as “infrastructure bottlenecks, policy uncertainly and governance,” said Rupa Rege Nitsure, an economist at Bank of Baroda (BOB) in Mumbai.
To contact the reporters on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net; Jeanette Rodrigues in Mumbai at jrodrigues26@bloomberg.net
To contact the editor responsible for this story: Stephanie Phang at sphang@bloomberg.net
India Markets Plunge Pressures Singh as Economy Teeters
India’s biggest stock market slide in almost two years, surging bond yields and an unprecedented plunge in the rupee are pressuring officials for fresh steps to stem capital outflows and revive a struggling economy.
The S&P BSE Sensex (SENSEX) Index sank 0.8 percent as of 9:43 a.m. in Mumbai, extending the 4 percent loss on Aug. 16, while the rupee touched an all-time low of 62.46 per dollar. The yield on the government bond due May 2023 rose 8 basis points to 8.98 percent, the highest on a 10-year note since 2008.
The market rout underscores the failure of months of measures to contain outflows, from higher interest rates to gold import curbs. Foreigners sold a net $3 billion of Indian stocks and bonds in July as the slowest growth in a decade made Asia’s third-largest economy vulnerable to a pullout of funds from emerging markets, spurred by speculation the U.S. Federal Reserve will cool stimulus.
“The market is questioning the effectiveness of policy makers’ moves and the options available to them,” said Priyanka Kishore, a strategist at Standard Chartered Plc in London. “Earlier, the government said it had a grand plan. This is what the market expected, but the final measures disappointed.”
The currency has weakened about 26 percent versus the dollar in the past two years. The tumble has brought back memories of the early 1990s crisis, when the government received an International Monetary Fund loan as foreign reserves waned.
Policy Concern
India won’t face a repeat of that situation as it has enough reserves for about seven months of imports, compared with 15 days back then, Prime Minister Manmohan Singh said last week.
“Our primary concern is that the policy authorities still don’t ‘get it’ –- thinking this is a fairly minor squall which will simmer down relatively quickly with fairly minor actions,” Robert Prior-Wandesforde, an economist at Credit Suisse Group AG in Singapore, wrote in a note. “If this remains the case, then a swift move to 65 against the U.S. dollar is probable, which in turn should help focus minds.”
The current-account gap widened to 4.8 percent of gross domestic product in the 12 months ended March. The Reserve Bank of India estimates the sustainable level is 2.5 percent of GDP.
“Slow growth, high inflation, a high fiscal deficit and high current-account deficit all point to the inescapable conclusion that India’s problems are deep and structural,” said Prasanna Ananthasubramanian, an economist at ICICI Securities Primary Dealership Ltd. in Mumbai.
Staunch Outflows
While other developing nations are also striving to staunch outflows, the rupee’s 12 percent fall in the past three months is the worst after the 15 percent decline in Brazil’s real in a basket of 24 emerging markets tracked by Bloomberg.
The Reserve Bank of India since mid-July has raised the marginal standing facility and bank rates, capped cash injections into the banking system and tightened lenders’ daily reserve requirements to curb the supply of rupees, seeking to shore up the currency’s value.
The government has also raised taxes on gold imports to try and narrow the trade imbalance. It plans to allow some state companies to issue quasi-sovereign bonds to garner inflows to help finance the current-account gap.
The monetary authority targeted outflows on Aug. 14, cutting the amount Indian companies can invest abroad without approval to 100 percent of their net worth from 400 percent, and saying residents can remit $75,000 each financial year compared with a previous limit of $200,000.
‘Funding Risk’
Finance Minister Palaniappan Chidambaram said last week curbs on gold and silver imports and plans to compress inward shipments of non-essential items will trim the current-account gap to $70 billion, or 3.7 percent of GDP, this fiscal year.
India will “remain exposed to funding risks” if the current-account deficit exceeds 2.5 percent of GDP and consumer-price inflation stays above 7 percent, according to Chetan Ahya, a Morgan Stanley economist in Hong Kong.
Global funds have cut holdings of rupee debt by about $10 billion since May 22, when U.S. Fed Chairman Ben S. Bernanke said $85 billion a month of debt purchases could be reduced if America’s jobs market shows sustained improvement.
India’s economy may expand 5.5 percent in the year through March 2014, compared with 5 percent in the previous 12-month period, the central bank estimates. That lags behind the 10-year average of about 8 percent as well as the performance of neighbors from Indonesia to the Philippines.
Repair Image
Singh said in a speech on Aug. 15 marking India’s Independence Day that slow growth won’t last long. Work on ports, airports, industrial corridors and rail projects will start in coming months, he said.
The premier is seeking to repair the image of his government and the ruling Congress party before elections due by May. Graft scandals, clashes with coalition partners and the risk of a credit-rating downgrade have hurt his administration.
The government began reforms in September 2012 to restrain the budget deficit and ease restrictions on foreign investment in industries from aviation to retailing.
Etihad Airways PJSC agreed in April to buy a 24 percent stake in Mumbai-based Jet Airways (India) Ltd. for 20.6 billion rupees ($334 million), taking advantage of the changes. AirAsia Bhd. in March won approval to form a venture with Mumbai-based Tata Group to set up a local low-fare airline.
The latest Indian data show conditions akin to stagflation persist. Industrial production fell 2.2 percent in June from a year earlier. Consumer prices rose 9.64 percent year-on-year in July, the second fastest in the Group of 20 major economies.
The figures underscore India’s need to address structural issues such as “infrastructure bottlenecks, policy uncertainly and governance,” said Rupa Rege Nitsure, an economist at Bank of Baroda (BOB) in Mumbai.
To contact the reporters on this story: Kartik Goyal in New Delhi at kgoyal@bloomberg.net; Jeanette Rodrigues in Mumbai at jrodrigues26@bloomberg.net
To contact the editor responsible for this story: Stephanie Phang at sphang@bloomberg.net
SarthakGanguly
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Here speaks a Nobel laureate or Harvard/Cambridge Economics professor. Right? 
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