News X: RBI measures fail to contain the falling Rupee
- 5 years ago
The rupee plunged to a record low on Wednesday on heavy dollar demand from importers as traders fretted over mixed signals from the Reserve Bank of India over its efforts to prop up the currency without choking off economic growth.
The rupee fell 2 per cent to a record low of 64.54 to the dollar despite what traders said was sporadic central bank intervention in both the spot and forward markets.Since mid-July, the RBI has taken steps to tighten cash conditions, which have failed to support the rupee but sent bond yields surging, posing a fresh threat to an economy that grew at a decade-low 5 per cent in 2012-2013.
With a record high current account deficit at 4.8 per cent of GDP, India is especially vulnerable to funds moving away from emerging markets in anticipation of a winding back of the U.S. Federal Reserve's stimulus program. Traders are looking ahead for clues from Fed minutes to be released later today.
--
For More information on this news visit : http://www.newsx.com/
Connect with us on Social platform at : http://www.facebook.com/newsxonline
Subscribe to our YouTube Channel : http://www.youtube.com/newsx
The rupee fell 2 per cent to a record low of 64.54 to the dollar despite what traders said was sporadic central bank intervention in both the spot and forward markets.Since mid-July, the RBI has taken steps to tighten cash conditions, which have failed to support the rupee but sent bond yields surging, posing a fresh threat to an economy that grew at a decade-low 5 per cent in 2012-2013.
With a record high current account deficit at 4.8 per cent of GDP, India is especially vulnerable to funds moving away from emerging markets in anticipation of a winding back of the U.S. Federal Reserve's stimulus program. Traders are looking ahead for clues from Fed minutes to be released later today.
--
For More information on this news visit : http://www.newsx.com/
Connect with us on Social platform at : http://www.facebook.com/newsxonline
Subscribe to our YouTube Channel : http://www.youtube.com/newsx