RUPEE HITS LOWEST POINT IN LIFETIME

Today rupee hits its lifetime low of Rs.56.53 per dollar. Its previous record was Rs 56.52 per dollar on 31 May,2012.
Today global markets are weakened after the Fed extended its current bond buying programme by less than some investors had hoped.

The rupee remain vulnerable to any flare-ups of global risk aversion along with domestic challenges.

The RBI disappointed domestic markets by keeping interest rates on hold on Monday. Fitch Ratings cut the country’s outlook to negative on Monday only. Earlier S&P also decreased the India’s investment grade rating.

[…] Read more

REASONS OF FALLING VALUE OF RUPEE

Yesterday Indian rupee fell to 56 per dollar, a day after the central bank disappointed domestic markets by keeping monetary policy unchanged. India is witnessing a fall all round, from stock market to currency value. Only inflation is increasing.

The crude oil has shown some weakness recently but the depreciating rupee has squared off the benefit of price easing.
Following are the few reasons why value of Rupee is Depreciating:

1. INFLATION: Generally, a country with consistently lower inflation rate exhibits rising currency value, but India is facing consistently higher inflation rate so is the lower currency value. Through higher inflation […] Read more

REASONS FOR RUPEE BEING AMONG WEAKEST CURRENCIES

Indian Rupee is one of the weakest currencies in Asia and other emerging markets. In this post I will be discussing few reasons for this:

1. India imports more that exports: In March 2012, Indian exports fell an annual 5.7% and imports rose 24.3%. High imports mean more demand for foreign money and this puts pressure on Indian Rupee.

2. Less Foreign Investments: Foreign investments into Indian stocks have went to negative with $545 million outflow in April 2012 from a mere $7.2 million inflow. Foreign Direct investment fell to 2.2 % in February 2012 from 5.7% in May 2011.

3. Fall in […] Read more

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