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The rupee is set to breach the Rs 60-a-dollar mark again this week as the Street expects foreign institutional investors to continue pulling out of domestic markets. According to the street, this would result in government bond yields rising.
Finance Minister P Chidambaram on Monday said the currency will find its level as steps being taken by the government to contain fiscal and current account deficits will improve investor sentiments.
Years of unprecedented stimulus has left the Fed swollen with $4.5 trillion in bonds
Global buyers are putting pressure on exporters to offer discounts between 10 per cent and 15 per cent.
It isn't Rajan ignoring money as much as it is Bernanke ignoring capital and exchange rates.
'If you keep inflation low, everything else like messing up after after demonetisation will be forgiven,' says T C A Srinivasa-Raghavan.
According to Subbarao, the pressure on the currency was inevitable.
Mr Swamy has written letters to the Prime Minister's Office asking for Mr Rajan's services to be terminated.
These investors have pumped in about Rs 6,900 crore (Rs 69 billion) in the seven trading sessions after the Federal Open Market Commission meet.
The RBI has enough "fire power" to deal with the rupee volatility and will intervene in the forex market as and when required, said Planning Commission Deputy Chairman Montek Singh Ahluwalia.
The minister further said the rupee will regain the ground it lost against other currencies in the past few days.
The rupee is likely to strengthen to 60-61 level by this fiscal-end on expectations of improvement in current account deficit (CAD) and higher inflows from overseas investors.
'When I came here in 2002, I said you can grow at 8%.' 'And I was told that was crazy, and (now) here we are.'
Market recovery on the cards in 2014 as investors are likely to chase higher yields
India's numbers have shown a reasonable amount of improvement.
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The rupee on Friday touched an all-time low of 62.03 to a dollar, spooking the equities market and dragging the Sensex down to 18,621.39 in the afternoon.
India's record current account deficit has been a key reason behind why Standard & Poor's and Fitch Ratings cut their outlooks on the country's sovereign rating to 'negative' last year.
Germany is now sitting on a mountain of savings.
Also keenly watching inflation numbers, with wholesale inflation data expected today
A sovereign bond float continued to be among the range of options to address the current account deficit (CAD), Finance Minister P Chidambaram said on Tuesday, even as former Finance Minister Yashwant Sinha asked him to tell Parliament the Centre would not countenance that measure.
The next round of bad news could come from Europe, where banks in a number of economies such as Italy, Portugal and Greece are sitting on mountains of bad loans.
Based on the GDP numbers and the remarkable stability of the taka Bangladesh's Prime Minister, Sheikh Hasina, is a better manager than our 'economist prime minister',' says TVR Shenoy.
Markets are also watching a meeting in Moscow of G20 finance ministers for signs of an orchestrated approach to the end of US money-printing, which could help defuse volatility in global markets.
The good news for us is that India's economy - and sentiment about it - is much better than it was a year ago, says Jamal Mecklai.
Some investors had speculated that the US central bank might put its plans on hold given the jitters overseas.
Rajan also said it's a problem of collective action and not a problem of industrial nations or emerging markets
In India we have to be careful not to copy any level of dependence on the financial sector and infatuation with the get-rich-quick syndrome, says Jaimini Bhagwati.
The Federal Reserve must now ensure that higher inflation doesn't derail the US recovery.
For one thing, US Fed Chairman Ben Bernanke was perhaps right in postponing the quantitative easing taper even though the markets had complained at that time that they were primed for some reduction in QE3 and the Fed had missed an opportunity to execute their plans without causing too much of a flutter.
Summers dogged by controversies over past views
The nomination would put Yellen on course to be the first woman to lead the institution.
They believe that long-term story is intact.
Nobutaka Kitajima, chief investment officer -- equity, LIC Nomura Mutual Fund, tells Business Standard the reaction to the Fed's statements has been overdone and the current downturn has punished certain stocks much more than their inherent economic worth and business potential.
'You want a steady, confident, self-assured and highly skilful hand at the till. 'It is a pity that the BJP has decided to deprive itself of such a hand at this politically sensitive time.' 'It is like sacking your surgeon in the middle of your brain surgery,' says S Muralidharan.
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