The rupee edged higher by 16 paise to over two-week high of 59.53 against the US dollar at the Interbank Foreign Exchange market on Thursday (03 July) on increased selling of the US currency by exporters amid capital inflows.Forex dealers said a higher opening in the domestic equity market and strengthening of the euro against the US dollar overseas also supported the rupee.The rupee appreciated by 38 paise, its biggest single-day rise in seven weeks, to close at 58.69 in Wednesday's (02 July) trade on optimism that the budget next week would have strong measures to put finances and the economy back on track.Meanwhile, the benchmark BSE Sensex climbed to yet another record-high of 25,924.25, rising 83.04 points, or 0.32 per cent, in early trade on Thursday.(PTI)
Read More
The rupee rose marginally by two paise to 60.05 against the US dollar in early trade today on sustained capital inflows amidst a higher opening in the domestic equity markets.Dealers attributed the rise in domestic currency to sustained selling of the dollar by exporters amidst heavy foreign capital inflows.Besides, dollar's weakness against other currencies overseas also supported the rupee's rise, they added.The rupee rose by 10 paise -- its biggest single-day rise in over ten days - to end at 60.07 against the dollar after the government hiked fuel and LPG prices to ease subsidy burden and rise in stocks.Meanwhile, the benchmark BSE Sensex surged 216.52 points, or 0.84 per cent, to hit new record high of 25,732.87 in opening trade.(PTI)
Read More
A high fiscal deficit and inflation are major challenges for India, Finance Minister Arun Jaitley said on Tuesday (1 July), adding that "mindless populism" in policymaking needed to be checked.His comments will add to expectations that Jaitley could unveil tough fiscal consolidation measures in his first annual budget on 10 July.An interim budget set a deficit target of 4.1 per cent of GDP for the financial year that began in April, but the fiscal gap has already risen to Rs 2,40837 crore ($40.05 bln), or 45.6 per cent of the full-year target."Fiscal deficit is a major challenge. The growth has slowed down," Jaitley told an event for national auditors in New Delhi."Now India needs certain amount of fiscal discipline ... there is hope that bold decisions will be taken now."He said that although inflation had moderated in the last few months, "it is still beyond the acceptable level".India's wholesale price inflation hit a five-month high of 6.01 percent in May, underscoring the challenges faced the new government, whose Prime Minister Narendra Modi has warned he will administer "bitter medicine" to revive the ailing economy.Food price inflation is near double-digits, with a late monsoon pushing up the cost of vegetables and dairy products. The government has also raised railway fares and fuel prices as crude oil prices have risen on international markets.Jaitley said populist policies and paralysis in policymaking had slowed growth, and that an improving current account deficit position in the last few months was the only "silver lining" for the Indian economy.Private economists expect the budget to shift the policy focus from consumption to investment, and address the issue of fiscal imbalances. Jaitley said Indians would have to pay higher prices for better services as any rise in taxation would hurt growth by taking money from the hands of consumers."If you indulge in mindless populism, you burden the exchequer. You expect the finance minister to impose higher taxes," he said. "It does not work."(Reuters)
Read More
French Foreign Minister Laurent Fabius on Tuesday (01 July) called on Prime Minister Narendra Modi and discussed ways to strengthen cooperation in key areas such as defence, trade and investment with India expressing keenness on setting up industrial bases for it to boost ties.The visiting minister also extended his President Francois Hollande's invitation to Modi to visit France.Terming his meeting with Modi as "warm", Fabius said he had "positive" talks with the Prime Minister on issues of urban planning, tourism and low-cost defence manufacturing.Asked if he raised the multi-billion Rafale deal with Modi, the minister did not give a direct answer but said it was acknowledged that defence was a very important area of cooperation in the bilateral relationship."The next step is for the French firm Dassault and for the Indian government to discuss the details which have not yet been discussed and hopefully reach a conclusion.... For us the early the better...," the minister told a select group of news agency journalists.Yesterday, during his meetings with Defence Minister Arun Jaitley and his Indian counterpart Sushma Swaraj, Fabius had pushed for early purchase of the multi-billion dollar Rafale combat aircraft by India.The visiting minister said the two countries are keen on strengthening economic ties and technology sharing and during the meeting the Prime Minister was interested in setting up "industrial bases" in the country.Fabius said the biggest takeaway for him from this visit was the certainty that the new government was committed to further strengthen and expand the bilateral relationship.Among other issues, they discussed climate change, anti- terrorism and people-to-people exchanges. .Fabius said, "We discussed climate change and have been positively impressed by the approach of Prime minister Modi and his ministers. And we have decided to prepare for the Paris conference together and it is important because India is a major player in that conference....".Welcoming the Minister, Modi remarked that yesterday he had an opportunity to witness the launch of the French satellite, SPOT-7, which was placed in orbit by the Polar Satellite Launch Vehicle from Sriharikota, an official release said.Recalling the strategic and friendly ties between the two countries, the Prime Minister sought French cooperation in the field of urban planning and heritage conservation.Observing that France had provided technical support for the Ahmedabad Heritage Project, Modi said India plans to build heritage cities and 100 new smart cities. And in this regard he noted France's expertise in the area.Fabius expressed his country's keenness to expand the cooperation and the relationship, following the assumption of office by the new government here.The meeting was attended by External Affairs Minister Sushma Swaraj, National Security Advisor Ajit Doval and Foreign Secretary Sujatha Singh among others.(PTI)
Read More
The rupee is trading at 60.83/84 versus Tuesday's (19 August) close of 60.6750/6850.The USD/INR pair is likely to see some resistance in the 60.86-94 zone while there is good support at 60.58-60 levels, says a trader.Dollar's gained versus other Asian units and majors aiding the pair.Index of the dollar versus six majors up 0.08 per cent.The rupee is seen in a broad 60.50-61.00 range during the session.Local shares to be watched for cues on fund flows. Nifty down 0.11 per cent as of 9:37 a.m.(Reuters)
Read More
Climate change will cut South Asia's growth almost 9 per cent by the end of the century unless world governments try harder to counter global warming, the Asian Development Bank (ADB) said on Tuesday (19 August).The region is home to a fifth of the world's population and is already vulnerable to climate extremes: seasonal floods, cyclones and droughts that ravage vast swathes of agricultural land and displace hundreds of thousands of people every year.The costs of countering climate change in South Asia will also increase over time and will be prohibitively high in the long term, the ADB's "Assessing the Costs of Climate Change and Adaptation in South Asia" report said.Gross domestic product (GDP) losses are projected at 12.6 per cent for the Maldives, 9.9 per cent for Nepal, 9.4 per cent for Bangladesh and 8.7 per cent for India by 2100."Without global deviation from a fossil-fuel-intensive path, South Asia could lose an equivalent of 1.8 per cent of annual GDP by 2050, which will progressively increase to 8.8 per cent by 2100 on the average under the business-as-usual scenario," it said.The Maldives will also be hardest hit in the next few decades, with a loss of 2.3 per cent of GDP. Bangladesh, Bhutan, India, Nepal and Sri Lanka will lose 2 per cent, 1.4 per cent, 1.8 per cent, 2.2 per cent, and 1.2 per cent, respectively, by 2050.Those countries, excluding Sri Lanka, will see more frequent severe weather, damaging property, infrastructure, agriculture and human health, the ADB said. Between 1990 and 2008, more than 750 million people in South Asia were affected by at least one natural disaster, resulting in almost 230,000 deaths, it said.Coastal areas of Bangladesh, India, the Maldives, and Sri Lanka will see sea level rises that are likely to displace people and adversely affect the tourism and fisheries sectors.The cost of shielding the region against climate change could be lowered if the world's governments significantly cut greenhouse gas emissions and, if the rise in global temperatures was kept below 2.5 degrees Celsius, that cost could be nearly halved to about $40.6 billion, or 0.48 per cent of GDP, it said.South Asia also needs to introduce flood- and saline-resistant crop varieties, better coastal zone management, improved disease surveillance, protection of groundwater and greater use of recycled water.India, one of the world's largest agrarian economies, is badly at risk, the report said, and may see GDP losses of up to 8.7 per cent by 2100."Agriculture provides employment and livelihood opportunities to most of India’s rural population and changes in temperature and rainfall, and an increase in floods and droughts linked to climate change, would have a devastating impact on people’s food security, incomes, and lives," ADB Vice-President Bindu Lohani said in a statement.(Reuters)
Read More
Indian factory activity expanded in June at its quickest pace since February while output prices rose at the fastest rate in eight months, signalling a further rise in inflation that is bound to vex the Reserve Bank of India (RBI), a business survey showed on Tuesday (01 July).The HSBC Manufacturing Purchasing Managers' Index (PMI), compiled by Markit, advanced to 51.5 in June from 51.4 in May. A figure above 50 indicates expansion.A jump in new export orders pushed the output sub-index to 52.4 from 51.7 in the previous two months."Things are gradually improving in India's manufacturing sector. Output picked up in June, supported by growing order flows, especially from overseas," said Frederic Neumann, co-head of Asian economic research at HSBC.But domestic demand remained weak, hurting jobs growth."The muted pace will suit the RBI: since input and output prices are rising as well, faster growth would only stoke inflation and require tightening," added Neumann.The survey showed firms passed on a greater cost burden to consumers. Prices charged rose at their fastest pace since October.After May wholesale price inflation hit a five-month high any further move up would put pressure on the RBI to leave interest rates on hold for longer or even to raise them.(Reuters)
Read More
The rupee was trading at 60.13/14 marginally below above previous close of 60.17/18.However, the rupee is expected to continue to remain in a tight range ahead of the budget on July 10 with the geo-political situation in Iraq and Reserve Bank of India intervention being closely monitored.Traders will monitor the domestic share market for clues on the direction of foreign fund flows. The BSE Sensex is trading up 0.34 per cent.The dollar languished at seven-week lows against a basket of major currencies on Tuesday, having extended a month-long decline after a recent batch of mixed data cast doubts on the strength of the U.S. economic recovery.(Reuters)
Read More
