RBI MEASURES FAIL TO CHEER , RUPEE HITS ALL TIME LOW
Today rupee slumped to lowest level Rs 57.92 after RBI announced measures but it manages to recover some ground and closed at Rs 57.01.
At Forex market, there was expectation that government measures will arrest rupee’s down slide, which has fallen over 26 percent in last one year.
Today Moody’s today retained country’s credit rating to STABLE in comparison to earlier NEGATIVE rating.
RBI announced a hike in FII ( Foreign institutional investors) limit in government bonds to USD 20 billion, while allowing up to USD 10 billion from overseas borrowings by India Inc for financing new projects and refinancing of rupee loans.
Today was a day of huge fluctuations for the local currency, swinging between 57.92 and 56.38, a difference of 154 paise, one of the largest in recent history. The RBI directed its actions to aid increase in the Foreign capital flows by hike the limits and expanding the external commercial borrowings net.
Rupee is also declining against Japanese Yen to 71.42 from last close of 71.20.