INSUBCONTINENT EXCLUSIVE:
Foreign investors have pulled out Rs 48,000 crore from Indian markets in the first 6 months of 2018.The rupee suffered yet another blow on
Monday, by falling 34 paise to end at a near five-year low of 68.80 against the US dollar
The fall in the value of the rupee against the greenback came in the midst of weak global trends and concerns on the macroeconomic front,
reported news agency Press Trust of India
The level of 68.80 marked the weakest closing of the rupee against the US currency since August 28, 2013
first time ever on Thursday and hit a life-time low of 69.10
Asia's third-largest economy is facing severe macro challenges against the grim backdrop of soaring global crude prices, which is most
likely to disrupt government's fiscal math and poses additional risks to inflation forecast
Trade worries were at the heart of currency market weakness, say analysts."The rupee has been one of the worst performing currencies among
peers Against the USD, it has depreciated by 6.6 per cent in calendar year 2018 and 8 per cent year to date
Adding to our concern is the increasingly hawkish Federal Reserve, which has now initiated a reversal of the Quantitative Easing (QE) -
volatile commodity prices playing havoc with the import bill, we reckon that the situation will worsen at the trade front as well
We are expecting the Current Account Deficit to peg at 2.2 per cent of GDP (30 bps higher than previous year)
Our estimate for the rupee relative performance to the USD suggests an upper bound of 70 by Q3 FY19
An improvement can be foreseen in calendar year 2019," he added
Crude oil: Saudi Arabia has increased its oil production by 700,000 bpd to 10.70 million bpd, very close to its highest ever production of
10.72 million bpd from November 2016
Brent crude futures, an international benchmark, is trading sharply down at $78.56 a barrel, in early Asian trade
President Donald Trump called on OPEC to produce more oil.2
Fed hikes: Dollar strengthened broadly in Asian session despite an escalating trade tensions between US and China as market is pricing on
The US is set to impose fresh tariffs on $34 billion worth of Chinese goods on Friday and the world's second-largest economy is on course to
FPI outflows: Meanwhile, overseas investors and funds pulled out nearly Rs 48,000 crore from Indian capital markets in the first six months
Weak FDI: Foreign direct investment (FDI) in India seems to be petering out with the inflows growth rate recording a five-year low of 3 per
Falling forex: In the meantime, country's foreign exchange reserves fell for a second week to $407.82 billion, the RBI said
Domestic equities fell back after a weekend rally with cyclical sectors including mining, power and infrastructure stocks succumbing to
Most Asian stocks also took a beating.(With PTI Inputs)
