The rupee has lost around 12% to the dollar
since the start of May and hit a record low of 61.80 to the dollar on Tuesday. The
RBI unveiled further measures late on Thursday to drain cash from the financial
system by auctioning government cash management bills every week. The
government is likely to announce a slew of measures, including raising duties
on non-essential goods and relaxing norms for overseas fund raising by corporate,
to stabilise the rupee. The steps by the government would be in addition to
those already announced by the Reserve Bank to contain the sliding rupee. Finance
Minister had earlier said that the government is working on relaxing External
Commercial Borrowings norms for corporate as well considering allowing public
sector undertakings to issue quasi-sovereign bonds which could fetch foreign
exchange.
Economy has been stuck below 5% for the past
two quarters and analysts expects India to report a second straight contraction
in industrial production in June, as industrial activity is not picking up and investment
activity is stagnant.
Tokyo Commodity Exchange and all other market closed
with a positive note and it is expected that tommorrow, most probably TOCOM
will cross ¥260 a kg mark for August contract and for January contract it may
touch ¥265 a kg mark.
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