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The rupee hits 62.90 in early trade, its lowest level since 22 November, as Asian stocks trading with heavy losses. The pair last trading at 62.77/78 vs Friday's (24 January) close of 62.66/67.Dealers will closely watch for RBI intervention at current levels after the RBI was suspected to have sold dollars in late session on Friday.The RBI to decide on rates on Tuesday (21 January). While the consensus still is towards no hike in policy rates, RBI chief Raghuram Rajan's comments will be closely watched for future rate trajectory after his recent hawkish comments.Scotiabank says looking at the next key topside level of 63.90, the top of the November move higher in USD/INR, ahead of the pivotal 64.00 point.(Reuters)
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Delhi Chief Minister Arvind Kejriwal, who faced flak for his protest in the heart of the capital, on Satursday (25 January) said the Constitution does not prevent the Chief Minister from holding a dharna."I read the Constitution, couldn't find anywhere that a Chief Minister cannot hold 'dharna'," he said on criticism to his two-day dharna outside Rail Bhavan.He also charged that "the media is getting paid to do negative stories on AAP."Kejriwal's role in leading a protest while holding constitutional office has came under the scrutiny of the Supreme Court which on 24 January slammed law enforcing agencies for allowing unlawful assembly of supporters of the Chief Minister in the heart of national capital.In his Republic Day address at Chhatrasal Stadium here, the Delhi Chief Minister said the Jan Lokpal Bill is almost ready and will be passed at a special session in Ramlila Maidan in February.Holding that security of women in the national capital is "highly compromised", he said the government has formed a committee under the Chief Secretary for the formation of 'Mahila Suraksha Dal' in the city."Women security in the national capital is highly compromised. It is our utmost duty and priority to provide security to women. We have formed a committee under the Chief Secretary for formation of Mahila Suraksha Dal," he said.He said that it may not have powers like the police but the force will work like security guards stationed outside buildings and housing societies."They will provide security to women. We will have retired army personnel, police and home guards as members of suraksha dal," he said.Kejriwal also said the committee under the chief secretary will make provisions to ensure that rapists are sent to jail within 3 to 6 months. (PTI)
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Over the last five years, India has witnessed a surge in Japanese companies entering the country. From 700-odd companies in 2009 to over a 1,000 in 2013, the rise is noteworthy. Many large infrastructure projects such as Delhi-Mumbai Industrial corridor with its first Japan Industrial town at Neemrana in Rajasthan have seen over 40 Japanese companies invest in it, SriCity Integrated Business Town near Chennai and a high level of interest has been expressed in a similar initiative near Pune. The MSME sector is also focussing on automotives and consumer electronics lately. With consumer goods major Unicharm, Kagome and Kose Cosmetics among others, who have set up shops either on their own or jointly with reputed Indian companies; Japan is looking forward to foray into the FMCG sector as well. Unlike Indian business houses that take on high risks without paying much attention to data, Japan has been globally successful in undertaking market and industry research projects, spending huge resources in feasibility and pilot studies ensuring a high percentage of success. Japan is one of the largest market research consumers, after US. Many Japanese research firms have already set up their Indian offices or are associated with Indian firms. Tokyo-headquartered consulting powerhouse RJC Research Inc has forged business ties with Gyan Research and Analytics to gain insights and business intelligence about Indian markets. This is an opportunity for RJC Research to help Japanese companies understand the complex Indian market and its needs. It will also provide intelligence to Indian companies looking at business opportunities in Japan. Gyan Research and Analytics has joined forces with the firm to provide in-depth understanding of the country's economy and its market mechanisms. It brings with it more than 100 years of combined experience of senior management working in areas of investment research, insurance, customer analytics, knowledge management, strategic and IT consulting.
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India's economy is projected to grow at a slower-than-expected rate of 5.3 per cent this year, according to a United Nations report which said the country's slowdown may have bottomed out.The UN World Economic Situation and Prospects 2014 (WESP) report said a mild recovery in investment as well as stronger export growth will help in the gradual GDP pick-up.It said the Indian economy, which accounts for over 70 per cent of total output in South Asia, slowed further in 2013.The growth was held back by weak household consumption and sluggish investment, the report added.Full-year growth decelerated to 4.8 per cent in 2013 from 5.1 per cent in the calendar year 2012.It said external conditions continued to be challenging as the Indian economy experienced significant capital outflows, which led to a sharp depreciation of?the rupee."While India's slowdown may have bottomed out, the recovery is likely to be slower than previously expected.Economic activity is forecast to expand by 5.3 per cent in 2014 and 5.7 per cent in 2015," the report said.It said the gradual pick-up in GDP growth is likely to be supported by good monsoon, recovery in investment and stronger export growth on the back of improved global conditions.The report further said that global economic growth is expected to increase over the next two years with continuing signs of improvement.The global economy is projected to grow at a pace of 3 per cent in 2014 and 3.3 per cent in 2015, compared to an estimated growth of 2.1 per cent in 2013."The euro area has finally ended a protracted recession.Growth in the United States strengthened somewhat. A few large emerging economies, including China and India, managed to backstop the deceleration they experienced in the past two years and veered upwards moderately. These factors point to increasing global growth," the report said.It said the central government is unlikely to meet its target of reducing the deficit to 4.8 per cent of GDP in the current fiscal year 2013/14,?since growth is below projections and the depreciation of the rupee pushes up the subsidy bill.On consumer price inflation, the report said India will witness a slight dip in inflation at 9 per cent in 2014 from 9.7 per cent in the previous year. Inflation could dip further to 8.1 per cent in 2015, it said."While the Reserve Bank of India is expected to maintain its focus on inflation, it is unlikely to raise policy rates considerably given the ongoing weakness in investment and growth. Should inflationary pressures ease in 2014 and the external financial environment stabilise, the RBI is likely to loosen monetary conditions," the report added.Among emerging economies, declines and volatility in capital inflows have been most pronounced in Asia.Portfolio equity inflows to India registered significant falls.Declines of capital inflows were found to be more acute in countries like Brazil and India because of the relatively high degree of liquidity in these markets, accompanied by sharp depreciations of the local currencies.Economic growth in South Asia remained lacklustre in 2013 as a combination of internal and external factors hampered activity, particularly in the region's?major economies such as India, Iran and Pakistan.The region's total gross domestic product?grew by 3.9 per cent in 2013, the slowest pace in almost two decades, after increasing by 4.2 per cent in 2012.Growth is forecast to pick up gradually to 4.6 per cent in 2014 and 5.1 per cent in 2015, supported by stronger external demand, a mild recovery in domestic?demand in India and improved economic conditions in Iran.In the United States, fiscal tightening and a series of political gridlocks over budgetary issues weighed heavily on growth.The US labour market and housing sector continued to recover and the country's GDP is expected to increase by 2.5 per cent in 2014.The report stressed that the risks associated with a possible bumpy exit from the quantitative easing programmes by the US Federal Reserve threaten the global?economy."Efforts by the Fed to pull out of quantitative easing programmes could lead to a surge in long-term interest rates in developed and developing countries," the report added. (PTI)
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The rupee dropped further by 31 paise to 62.24 against the American currency in late morning deals today on persistent dollar demand from banks and importers.The rupee resumed lower at 62.12 per dollar as against the last closing level of 61.93 at the Interbank Foreign Exchange (Forex) Market.It dropped further to 62.25 before quoting at 62.24 per dollar at 1045 hours. It hovered in a range of 62.10-62.25 per dollar during the morning deals.Sustained demand for the US currency from banks and importers in view firm dollar overseas mainly affected the rupee value, a forex dealer said.In the global market, the US dollar was recovering from its drop against most major rivals following global slowdown concerns that led investors to shove the greenback lower.Meanwhile, the Indian benchmark BSE-30 share barometer Sensex dropped by 125.72 points of 0.59 per cent to 21,247.94 in the late morning trade.(PTI)
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The rupee is at a two-week low tracking weak regional equities. The pair is at 62.13/14 versus Thursday's (23 January) close of 61.9275/9375 and intraday high of 62.19, the highest since 9 January.Local shares fell 0.4 per cent in early trade.Local shares are under pressure after comments from Reserve Bank of India Governor Raghuram Rajan suggested that interest rates may continue to remain high.The yen and Swiss franc held firm early on Friday (24 January), having charged higher overnight as worries about a slowdown in China and turmoil in some emerging markets spurred demand for the safe-haven currencies.(Reuters)
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The rupee is lower tracking Asian forex weakness, pair at 62.01/02 versus 23 January' 2014, close of 61.8150/8250. Local stocks trading with losses, down 0.2 percent. Dealer tips 61.80-62.10 band for session with exporters coming in at this spot range. The Canadian dollar wallowed at four-year lows early on Thursday after the Bank of Canada all but begged the market to sell the currency, while sterling took off as investors priced in an earlier start to rate hikes in the UK. (Reuters)
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Even as for the first time in decades a Japanese leader will be attending India's Republic Day parade on 26 January, 2014, indicating the growing importance of Japan-India relations, India’s shrimp exporters have shown how a non-tariff-barrier imposed on them by a major export destination such as Japan can be worked to their advantage.Eighteen months after Japan minimised the maximum allowable level of ethoxyquin trace in shrimps to 0.01 parts per million (ppm) – a standard that was seen as extremely difficult to comply with -- Indian exporters have gained their market share in that country and became the largest supplier of frozen shrimp to Japan in recent months. According to Marine Products Export Development Authority (MPEDA), India overtook Vietnam and Indonesia to become the largest supplier of frozen shrimp to Japanese market since September 2013. Overall seafood imports from India also showed an increase of 44.15 per cent in value during the same period, though the quantity showed a slight decline of 0.17 per cent. A sustained lobbying against the Japan’s notification which was taken up simultaneously by the central government also saw Japan revising its stand on residual limit by notifying allowable ethoxyquin, a key ingredient in shrimp feed, to a reasonable 0,2 ppm level last month.For the January–November 2013 period, however, India continued to be in the third place behind Vietnam and Indonesia in terms of shrimp supplies to Japan. The total shrimp exports up to November 2013 to Japan were 29153 tons worth 29651 million Yen.MPDEA points out that the export of shrimp from India increased 20.10 per cent in quantity and 61.79 per cent in value on an year on year basis for the period January–November 2013 compared to 2012. The increased intake in the country was attributed to short supply of shrimps from other major shrimp farming countries due to the Early Mortality Syndrome (EMS) disease and increased confidence in Indian farmed shrimp, especially the white leg (Litopenaeus vannamei) variety.The import inspection authorities of Japan had suddenly enforced the default level of 0.01ppm for Ethoxyquin in shrimps from India and Vietnam without any reason in August 2012. The sudden decision saw several of the Indian consignments getting rejected from Japanese ports.The issue was immediately taken up with the Japanese Ministry of Health, Labour and Welfare (MHLW), METI and Ministry of Foreign Affairs, Japan by Ministry of Commerce & Industry, MPEDA and Embassy of India, Tokyo citing the lack of scientific reasoning behind their action. Subsequently, then Minister of Health, Labour & Welfare referred the matter to the Food Safety Commission (FSC) under Cabinet Secretariat to asses and recommend Accepted Daily Intake (ADI) of Ethoxyquin in shrimps. The issue was also taken up at almost all bilateral meetings between India and Japan including at the Prime Minister’s level.Subsequently, the subcommittee of Food Safety Commission fixed the ADI for Ethoxyquin as 0.0083 mg /kg body weight in its meeting on 19th November 2013.MPDEA Chairman Leena Nair confirmed that the Japanese authorities has fixed the MRL at 0.2 ppm in crustaceans including farmed shrimp, thereby ending the 18 month long battle by MPEDA, with the support of Ministry of Commerce & Industry and Embassy of India, Tokyo. The revised MRL has been notified on 2nd December 2013 for public comments in Japan, as also placed in WTO.joecmathew@gmail.comTwitter: @joecmathew
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The rupee fell to a near two-week low on Tuesday, giving up early gains, on sustained dollar demand from a large state-run bank, which dealers speculated was likely to meet the government's defence purchase needs.The large bout of dollar requirement erased early gains in the currency, which had opened on a positive note as the non-deliverable forwards markets signalled gains for the rupee.The rupee was largely rangebound for most of the trading day in the absence of any major cues ahead of the Reserve Bank of India's rate-setting meeting next week.With the markets veering around to the view that the Reserve Bank of India will hold its firepower and prefer to wait for further data, rupee dealers will closely watch for equity market cues."The rupee was largely pulled down by defence-related dollar bids by a large state-run bank. I expect the currency to remain in a range in the run-up to the policy," said Navin Raghuvanshi, vice president at DCB Bank.The currency has largely been stable in the new year, but has failed to show appreciation in spite of the pretty strong inflows in the debt markets totaling over $3 billion.HSBC says that the rupee's rather tame show has been unwarranted given its high yielding status."But while they (INR and IDR) have not depreciated aggressively, the lack of a positive follow through so far this quarter is a concern, especially since some other EM current account deficit currencies are struggling," HSBC said in a note.The partially convertible rupee closed at 61.88/89 per dollar compared with its Monday close of 61.62/63. It fell 0.4 percent, its biggest daily fall since January 2.In the offshore non-deliverable forwards, the one-month contract was at 62.17 while the three-month was at 62.98.(Reuters)
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Pakistan has temporarily banned gold imports for the second time in six months as it tries to stem smuggling into India, which has clamped down on its own bullion buying to rescue state finances.India's import duty stands at a record 10 percent and tight restrictions on supplies have virtually dried up legal imports into what used to be the world's biggest bullion buyer, spurring a surge in smuggling and recycling to meet persistent demand."Credible reports have indicated that in the wake of steep increase in duty on import of gold in a neighbouring country there has been a surge in its smuggling activity," Pakistan's finance minister said, according to a statement on the ministry website (http://www.finance.gov.pk/press_releases.html).It said the ban would be for 30 days and exports, mostly jewellery, would not be restricted. Pakistan last banned imports for a month in August, 2013.Official imports into India shrank almost 90 percent in the six months to November as restrictions tightened. Between April and September - the latest data available - customs officials seizures of illegal gold nearly doubled compared to all of 2012.The World Gold Council puts the amount smuggled into India at up to 200 tonnes in calendar 2013.Pakistan usually imports tiny amounts in comparison with its much larger neighbour, although imports surged last year and purchases in July - the last month before the previous ban - amounted to $514 million.Pakistan said the ban would also check speculation on its currency.Gold is India's most expensive non-essential import and helped to swell its current account deficit to a record last fiscal year. But restrictions have worked and the deficit is now expected to be about $50 billion in the current fiscal year, down $20 billion from earlier estimates.That has prompted the government to consider relaxing curbs, according to government sources speaking earlier this month.With India's wedding and festival season in full swing, demand remains strong, keeping premiums near record highs at around $130 per ounce. That has encouraged recycling of existing jewellery to meet demand and also boosted smuggling.New Delhi's latest attempt to check illegal imports focuses on the biggest buyers, with jewellers now required to give details of any purchase of gold bars or jewellery worth over 500,000 rupees by the end of the month.(PTI)
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