Tuesday, June 11, 2013

Rubber moves up, Rupee declines, so the auto


The Indian rupee touches all time low of 58.95 against dollar. The rupee has lost over 2.5% in the last two trading days and nearly 10% in the past six weeks on concerns of scaling down of stimulus packages by the US.

This is a temporary phase. This is simply a correction. Our indication is some of the FIIs are now poised to bring in large funds. In next 3-4 days, we will see a mid-course correction. The rupee would recover as the country’s economic fundamentals are strong and government is taking steps to increase fund flows, Department of Economic Affairs Secretary Arvind Mayaram said while addressing the reporters.

According to the data from Society of Indian Automobile Manufacturers, overall domestic sales during April-May 2013 declined by 0.64% compared to same period of previous year. Sales in passenger vehicles segment declined by 8.56%, commercial vehicles segment registered de-growth of 5.20% during April-May 2013, when compared to same period of 2012. The auto industry produced 1,737,548 vehicles in May 2013 as against 1,811,515 in May 2012, a decline of 4.08%.

Today, prices of RSS4 grade closed at `.174 a kg at Kottayam and RSS3 closed at `.166.01 a kg at Bangkok, while Malaysian SMR20 closed at `.135.56 a kg.

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