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Rupee falls to record low of Rs 53.29 per US dollar

Discussion in 'World Economy' started by ManuSankar, Dec 13, 2011.

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  1. ManuSankar

    ManuSankar Major SENIOR MEMBER

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    MUMBAI: The Indian rupee tumbled by 35 paise to an all-time low of Rs 53.29 per US dollar in early trade on the Interbank Foreign Exchange today on continued demand for the American currency from banks and importers, coupled with news of negative growth in industrial output in October.

    Dollar gains against other currencies overseas amid euro zone debt concerns also put pressure on the Indian rupee.

    The domestic currency had tumbled by 81 paise to close at a record low of Rs 52.84/85 per dollar in the previous session on strong demand for the American currency and strengthening of the dollar against its rivals overseas.

    Meanwhile, the BSE benchmark Sensex fell by 60.98 points, or 0.38 per cent, to 15,809.37 in opening trade today.

    The euro also plumbed two-month lows in Asia while the Australian dollar sank closer to parity as rising disappointment over the European Union's summit prompted investors to position for possible downgrades of euro zone sovereign credit ratings.

    Rating agencies warned on Monday that last week's EU summit, viewed by some as a last chance to save the euro, did not go far enough to ease immediate concerns about the region's debt markets.

    Asian stocks sank on Tuesday and the euro languished near a two-month low as investors took fright at the prospect of mass euro zone sovereign ratings downgrades after the outcome of a "last chance" European Union summit failed to convince markets.

    Commodities were also abandoned and the "risk" currencies of big resource producers such as Australia nursed heavy losses as investors huddled in the relative safety of the dollar, lifting both the US currency and Treasuries.

    Spot gold slid to a seven-week low on Tuesday, extending a 2.6-percent decline in the previous session, as worries about the euro zone debt crisis continued to grip investors after the euphoria over the European Union summit agreement faded.

    Rupee falls to record low of Rs 53.29 per US dollar - The Economic Times
     
  2. Himanshu Pandey

    Himanshu Pandey Don't get mad, get even. STAR MEMBER

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    great.... now ruin us:close_tema:
     
  3. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    Thats good news for Exporters,
    Bad news for Importers.

    And very bad news for the common man,
    Fuel Prices and electronics prices will jump to a new high.
     
  4. Himanshu Pandey

    Himanshu Pandey Don't get mad, get even. STAR MEMBER

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    the problem is we import more then export
     
  5. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    Would you all care to explain to me why if India is doing so good, and the US so bad why the Rupee going down and dollar going up. You know with the usa going bankrupt and all that.
     
  6. Himanshu Pandey

    Himanshu Pandey Don't get mad, get even. STAR MEMBER

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    presently India too is not doing as good as before. Rupee is down because FII is going out of market and will the lack of dollers the rate of them goes high as always in currency trading.
     
  7. jagjitnatt

    jagjitnatt Major ELITE MEMBER

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    Because of stupid fiscal economic policies by Indian Finance minister in the past 3-4 years.
     
  8. ManuSankar

    ManuSankar Major SENIOR MEMBER

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    Actually its not a very good news for Exporters either,the inflation will raise manufacturing cost and Exports will also fall eventually.
     
  9. Averageamerican

    Averageamerican Colonel ELITE MEMBER

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    Considering how stupid we have been lately that must be a new low on stupidy.
     
  10. TereBinLaden

    TereBinLaden Captain STAR MEMBER

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    Parallel economy is a major factor of concern for any national economy, another factor is if a rival nation push fake currencies into the market (indistinguishable with the authenticate one) the market might see initial rise for a time but ultimately resulting in inflation and market crash later on, this is a kind of economic attack upon a nation (well this is a hypothetical case).....well not sure of the real cause but fall of value of currency maybe for the reduction of Forex reserves, when Import exceeds Export drastically but on the other hand opening the economy was seen as a positive step for the growth and development of a nation, opening retail FDI must have brought some Forex but most of the people I discuss with (those who would be effected) are against such an idea. Maybe some economist could help us understanding Market economy.
     
  11. rcscwc

    rcscwc Major SENIOR MEMBER

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    Rupee is falling by the hours. I am no financial honcho, but there is something fishy about it. $ is rising against RE, [mostly, not much against Euro or pound. Correct me if I am wrong.]. Someone has to be unloading RE. in favours of $.
     
    Last edited: Dec 15, 2011
  12. Manmohan Yadav

    Manmohan Yadav Brigadier STAR MEMBER

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    Europeans are dumping Euro and investing in gold and dollar,

    thus creating an upward pressure on dollar and pulling the value of other currencies down.
    (Rs. is caught in the middle of it)
     
  13. rcscwc

    rcscwc Major SENIOR MEMBER

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    None can buy or sell dollars so as to affect global currencies. Only Rupee seems to be affected. Is someone offloading lots Re on the market? possible with lots of fake currency available. Such an operation would affect Rupee but not pound, yen or mark etc.

    It is well known that lots of fake 500/= and 1000/= notes are floating around.

    Cross your fingers for a CRRRRRASH, govt is impotent.
     
  14. ManuSankar

    ManuSankar Major SENIOR MEMBER

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    Fake currency is not the reason for Rupee depreciation,Its not just Rupee,every major currency in the world is depreciating against dollar.Rupee is depreciating is more because of our high Interest rates.The reason of current depreciation is high demand of dollar.The MNC's that are investing in India are facing heavy losses due to financial crisis and are pulling out there money from India to balance their losses abroad.Now that the Euro Zone is also facing crisis every body is shifting their attention to US dollar.So now there is a tremendous increase in the demand of US dollar.Its the same old principle as the demand increases value also increases.

    One thing is true,one Govt is impotent.Only thing they can do is to reduce interest rates.But we are still facing inflation.So RBI can't do much to prevent the Rupee depreciation.
     
  15. lucifer

    lucifer Lieutenant SENIOR MEMBER

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    After RBI intervention last night, Rupee has gained 2% approx. and will further stabilize in the coming days.
    Even the Euro has gained ground on the dollar.

    Like others have said, this was market adjustment caused by the uncertainties surrounding EU. AU$, Euro, GBP, INR, CNY, KR Won are the major currencies which lost value against the dollar.
     
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