Falling for the first time in three days, the rupee today erased initial gains to end 15 paise lower at 62.43 against dollar on fag-end demand of the US currency from banks and importers, amid a tepid stock market.
Falling for the second day, the rupee on Friday weakened by 12 paise against dollar to end at 62.68 weighed down by demand for the American currency from importers and data showing fiscal deficit crossed 95 per cent of the annual target during April-December.
The rupee had dropped by 60 paise or 0.89 per cent in previous three trading days.
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.
'The Indian economy is in slowdown and growth may stay slow,' notes Devangshu Datta.
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Policymakers stepped in late Thursday to calm markets.
Some foreign guest workers in the US will be able to re-submit their applications for the H1-B visa, the most sought-after non-immigrant visa among Indian IT professionals, if their petition was solely rejected because it was based on the initial registration period, according to a federal agency. According to the US Citizenship and Immigration Services (USCIS), such re-submission of applications is for those whose applications have been rejected or administratively closed solely because the requested start date was after October 1, 2020. The H-1B visa allows US companies to employ foreign workers in speciality occupations that require theoretical or technical expertise.
The rupee had slumped to its all-time closing low of 68.80 a dollar on August 28, 2013.
US election results may not reverse Indian markets' bearish trend, says Devangshu Datta
The next 12 months will be quite challenging marked by uncertain political events and evolving macroeconomic scenario
The deadly virus, which has killed over 5,000 people globally, has spread to 46 of the 50 US states.
RBI will now increasingly shift focus to domestic parameters
While the UK will possibly go into recession, the bigger fear is copycat referendums from other EU nations.
This will encourage exports and discourage non-essential imports such as precious metals
'Slower-than-anticipated recovery can be a bigger risk this time than a liquidity-driven event -- at least for India.'
As and when the GST comes in, Budget projections will have to be unbundled and revised. In fact, the pragmatic decision would be to present another Budget! This makes the passage of the Finance Bill with its multiple unrelated amendments seem even more dubious, says Devangshu Datta.
'As the growth momentum reverses benefiting from re-monetisation, it will be accompanied by a rise in inflation.'
The NSE 50-share Nifty spurted 97.25 points, or 0.92 per cent, to 10,715.50
After a day's respite, the rupee on Wednesday fell by 29 paise, its biggest single day fall in a week, to end at 56.73 today due to heavy dollar demand from importers amid renewed concerns over withdrawal of US monetary stimulus.
The new series claims GDP grew at seven per cent between April and June 2015, while gross value added (GVA) grew at 7.1 per cent.
Although the current long-term bullish trend is intact, markets are awaiting clarity on the taper and the Assembly election results.
According to the QNB Group report, the growth in emerging markets -- from Brazil to Indonesia, Russia and South Africa -- is slowing down, partly reflecting the tightening of domestic policies by these countries last year to stabilise foreign exchange rates.
Shares of rate sensitive sectors such as realty, infrastructure, banking and automobiles ended higher ahead of the Reserve Bank of India (RBI) mid-quarter policy review on June 17.
A good monsoon could rein in food inflation. Largely good corporate results mean better days are ahead. Nifty may reach record levels, points out Devangshu Datta.
On the White House website, his staff post a variety of proposals ranging from an "American First Foreign Policy" to killing former President Obama's climate action plan with agenda largely echoing his campaign website.
This is the BJP's first full-year Budget.
In a forthright "last public lecture" before he retires next week, RBI Governor D Subbarao was on Thursday sharply critical of the government, blaming its "loose fiscal stance" for the current economic woes, and warned that the root cause of rupee depreciation is "domestic structural factors."
Sensex, Nifty end lower on global concerns.
There will very little direct impact from the US Fed's rate hike this time, as we are well prepared both to handle liquidity, outflow of FII funds and managing our currency. But that doesn't mean India will be out of the woods anytime soon, says M V Subramanian.
Traders are waiting for the earnings season to kick off.
The govt would also be coming out with more measures to deal with inflation.
Earnings growth is expected to accelerate as lingering toxic effects of note ban ease off and GST settles down. However, stock valuations are high and that means market is also overdue for correction, says Devangshu Datta.
Chief ministers of states like Andhra Pradesh, Kerala and Karnataka were among those who raised the issue of loan waver scheme for farmers.
They believe that long-term story is intact.
Summary of sports events and persons who made news on Sunday
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