Cascading effect of rising raw materials will result in inflation, high rates, slow capex
A lower opening at the domestic equity market and the dollar's rise against other major currencies overseas also put pressure on the rupee, dealers said.
As global markets near all-time highs driven by liquidity, Marc Faber suggests most asset prices worldwide are inflated.
The Reserve Bank on Friday said the economy would grow by 5 to 5.5 per cent in the current fiscal, pinning its hopes on good farm output and improved exports.
US Fed rate rise raises risk of further drying up of FII flows.
Heavy unwinding by foreign portfolio investors and lacklustre equities dampened the sentiment
The RBI opened a forex swap window in August to meet the entire daily dollar requirements of three oil marketing companies as the rupee depreciated to an all-time low of 68.85 against the US currency.
Though inflation, on the basis of the wholesale price index, is nowhere near the 1990-91 level of 10.26 per cent and India is in a much better position to check it, the greater integration of our economy with the globe has exposed it to a much higher risk of imported inflation.
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The rupee gained 8 paise to close at over two-week high of 61.23 against the US dollar in the previous session.
Higher interest rates in the US do not necessarily coincide with capital outflows.
Dollar gained against major currencies overseas.
Foreign investors are betting top dollar on the country as growth is likely to recover at a time when other emerging markets are battling macroeconomic adjustments.
Bank credit growth, still sluggish, could see a rise if the Reserve Bank of India decides to cut interest rates, believes Ashima Goyal.
In a recent article, Rajan has ridiculed critics of the exchange rate policy.
Ongoing trade-war rhetoric between the US and China added some nervousness on the trading front coupled with extremely bullish dollar sentiment overseas.
IMF attributes the slower growth rate to supply-side bottlenecks.
The Budget has to provide for capex on roads, railways, defence and other infrastructure sectors.
The majority in the markets believe that a September lift-off is likely.
Faced with sluggish economic growth and dwindling exports, China on Wednesday devalued its currency for the second consecutive day.
It won't be an easy ride for the markets, reckon experts, considering the multiple state elections in 2018 and general elections next year.
RBI is expected to cut policy rates by 50 basis points by 2016.
Nifty ends above 8,400; TCS, HDFC surge 2%, Bajaj Auto dips 2%.
Month end dollar demand from oil importers has forced rupee to trade weak.
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 interim dividend will help Narendra Modi-led government partly bridge the deficit its budget had developed after the announcement of a Rs 75,000 crore a year cash dole scheme for small farmers.
Spread investments in equities, bonds, gold and cash to tackle volatility advise Nitin Singh, MD and head, and Vinay Joseph, director, investment strategy, Standard Chartered Wealth Management, India.
The broader NSE Nifty too fell below the 10,100 level by dropping 100.10 points to end at 10,094.25
China's devaluation creates new risk in global financial markets and could prolong the West's slowdown.
The rupee has depreciated by about 25 per cent in the past three months, from close to Rs 83 in mid-May, while it was even higher at about Rs 80 against the British Pound in March.
Commercial papers, certificates of deposit also dry up
The financial and commodity markets will continue to roil, as China's growth moderates and readjustments are made.
He endorsed transparency and financial stability in addition to issues related to inclusive growth and development, write Puran Singh and Nupur Pavan Bang.
Risk sentiment is likely to be favourable if oil prices stay benign, global growth sentiment remains robust and the dollar index does not break out, says B Prasanna.
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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.
The first major devaluation of the rupee happened in 1966 when it was pegged against the US dollar at Rs 4.75/$
Here are the key decisions announced by the Reserve Bank of India on Thursday.
T N C Rajagopalan on the new year and new worries.
Investment bankers handling the IPO had said marquee global investors made big-ticket applications.
It is high time to manoeuvre the rupee more effectively and predictably, even as it has to be recognised that such tweaking of the rupee needs to be accompanied by reforms to the real sector and factor markets.
Indian economy is doing well and the performance of domestic stock markets is not as bad as that of other nations.
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