Rupee recovers from record low but outlook gloomy

Write Comment     |     E-Mail To a Friend     |     Facebook     |     Twitter     |     Print


The Indian rupee, which Tuesday slipped to a new low of 53.50 to a US dollar intra-day, recovered a bit, but weakness in the currency persisted as demand for the green-back from importers and banks rose amid global uncertainty.

A depreciating rupee will make oil imports costlier, again increasing pressure on oil retailers to hike prices of at least de-regulated fuel like petrol, adding to upward inflationary pressures.

The rupee started on a weak note at about Rs.53.10 to a dollar at the Interbank Foreign Exchange compared to its previous close of Rs.52.84/85 per dollar. It fell to the record low of 53.50 a dollar in intra-day trade but recovered somewhat later on.
Around 5.20 p.m. the Indian currency was at 53.18 to a dollar. A minor rally Tuesday at Indian stock markets also helped steady the currency.

Data on industrial output that reported a decline to minus-5.1 percent in October, worse than what industry and experts had earlier feared, had triggered rupee’s decline in the currency market Monday.

Bearish sentiments took a strong grip on domestic equity markets which led to foreign investors selling their interests, again leading to increased demand for the dollar. If overseas funds intensify their selling in the coming days, the rupee could again slip further. The Indian currency has lost 16 percent in the past four months itself.

Eyes are now on the Reserve Bank of India (RBI), whether it will intervene again in arresting the rupee’s decline - like it did in September and October. The central bank had sold $845 million and $943 million in September and October respectively to support the currency, according to data available with the RBI.

It did not buy any dollars in both months. Analysts also blame the pressure on the rupee on the country’s widening current account deficit, which has tripled to $14.1 billion in the April-June quarter of current fiscal, when compared to the previous quarter.

The difference between a country’s imports of goods, services and its exports is called current account deficit. For the whole of 2011-12, current account deficit is expected to be around $54 billion.
 
Write your Comments on this Article
Your Name
Native Place / Place of Residence
Your E-mail
Your Comment   You have characters left.
Security Validation
Enter the characters in the image above
    
Disclaimer: Please write your correct name and email address. Kindly do not post any personal, abusive, defamatory, infringing, obscene, indecent, discriminatory or unlawful or similar comments. Kemmannu.com will not be responsible for any defamatory message posted under this article.
Please note that under 66A of the IT Act, sending offensive or menacing messages through electronic communication service and sending false messages to cheat, mislead or deceive people or to cause annoyance to them is punishable. It is obligatory on kemmannu.com to provide the IP address and other details of senders of such comments, to the authority concerned upon request. Hence, sending offensive comments using kemmannu.com will be purely at your own risk, and in no way will Kemmannu.com be held responsible.
Similarly, Kemmannu.com reserves the right to edit / block / delete the messages without notice any content received from readers.




Mangalorean Teen Feryl Rodrigues Shines as May Que
View More

Final Journey of John Henry Almeida (71 years) | LIVE from UdyavaraFinal Journey of John Henry Almeida (71 years) | LIVE from Udyavara
Final Journey of Mrs. Severine Pais (85 years) | LIVE from Milagres, Kallianpur, UdupiFinal Journey of Mrs. Severine Pais (85 years) | LIVE from Milagres, Kallianpur, Udupi
Final Journey of Mrs Lennie Saldanha (89 years) | LIVE from Kemmannu | UdupiFinal Journey of Mrs Lennie Saldanha (89 years) | LIVE from Kemmannu | Udupi
Final Journey of Zita Lewis (77 years) | LIVE from Kallianpur, UdupiFinal Journey of Zita Lewis (77 years) | LIVE from Kallianpur, Udupi
Final Journey of Henry Andrade (83 years) | LIVE from KemmannuFinal Journey of Henry Andrade (83 years) | LIVE from Kemmannu
Final Journey of Mr. Leo Britto (65 years) | LIVE from Mother of Sorrows Church, UdupiFinal Journey of Mr. Leo Britto (65 years) | LIVE from Mother of Sorrows Church, Udupi
Mount Rosary Church - Rozaricho Gaanch May 2025 IssueMount Rosary Church - Rozaricho Gaanch May 2025 Issue
Final Journey of Juliana Machado (93 years) | LIVE from Udyavara | UdupiFinal Journey of Juliana Machado (93 years) | LIVE from Udyavara | Udupi
Final Journey of Charles Pereira (78 years) | LIVE from KemmannuFinal Journey of Charles Pereira (78 years) | LIVE from Kemmannu
Milarchi Laram, Milagres Cathedral, Kallianpur, Diocese of Udupi, Bulletin - April 2025Milarchi Laram, Milagres Cathedral, Kallianpur, Diocese of Udupi, Bulletin - April 2025
Holy Saturday | St. Theresa Church, KemmannuHoly Saturday | St. Theresa Church, Kemmannu
Final Journey of Albert Lewis (85years) | LIVE From St Theresa’s Church Kemmannu | UdupiFinal Journey of Albert Lewis (85years) | LIVE From St Theresa’s Church Kemmannu | Udupi
Final Journey of Bernard G D’Souza | LIVE from MoodubelleFinal Journey of Bernard G D’Souza | LIVE from Moodubelle
Earth Angels Kemmannu Unite: Supporting Asha Fernandes on Women’s DayEarth Angels Kemmannu Unite: Supporting Asha Fernandes on Women’s Day
Final Journey of Joseph Peter Fernandes (64 years) | LIVE From Milagres, Kallianpur, UdupiFinal Journey of Joseph Peter Fernandes (64 years) | LIVE From Milagres, Kallianpur, Udupi
Milagres Cathedral, Kallianpur, Udupi - Parish Bulletin - January 2025 IssueMilagres Cathedral, Kallianpur, Udupi - Parish Bulletin - January 2025 Issue
Rozaricho Gaanch 2024 December Issue - Mount Rosary Church, SanthekatteRozaricho Gaanch 2024 December Issue - Mount Rosary Church, Santhekatte
Land/Houses for Sale in Kaup, Manipal, Kallianpur, Santhekatte, Uppor, Nejar, Kemmannu, Malpe, Ambalpady.Land/Houses  for Sale in Kaup, Manipal, Kallianpur, Santhekatte, Uppor, Nejar, Kemmannu, Malpe, Ambalpady.
Naturya - Taste of Namma Udupi - Order NOWNaturya - Taste of Namma Udupi - Order NOW
Focus Studio, Near Hotel Kidiyoor, UdupiFocus Studio, Near Hotel Kidiyoor, Udupi