'Rupee may fall to 50/dollar in 2 months'

New Delhi, October 9: : Indian currency may lose further ground and dollar is likely to touch Rs 50 in the next two months in the wake of global financial crisis, say exporters and economists.

With foreign institutional investors (FIIs) pulling out of the equity markets in the emerging economies, rupee touched a six-year low of 48.47 against dollar on Wednesday.

If the prevailing sentiment for withdrawal of portfolio funds continues and RBI does not intervene, the dollar can touch Rs 50 in the next 2-3 months, ICRIER Director Rajive Kumar said.

The FIIs have net sold USD 120 million from India in the last three months with the global equity markets receiving a thrashing after collapse of several banks in the US and Europe.

With erosion of over 20 per cent rupee value since April this year, exporters are laughing their way to bank on increased realisations, though some of them got trapped in the exotic derivative contracts of the previous year. While they want stability in the foreign exchange market, exporters seem to nurse a desire of the rupee touching 50.

"If this trend continues, the domestic currency will touch 50 against dollar in the next two months," Federation of Indian Export Organisations Director General Ajay Sahai said.

On the back of windfall resulting from currency depreciation, India's exports surged by 35.1 per cent between April and August this fiscal.

However, import increase of 37.7 per cent has left a big trade gap of USD 49 billion in the five months of the current fiscal. The trade gap could exert further pressure on the overall current account situation of the country.

Message*	Maximum characters allowed

Name*		Email ID*
Subject*		Country*

TERMS OF USE:
The views, opinions and comments posted are your, and are not endorsed by this website. You shall be solely responsible for the comment posted here. The website reserves the right to delete, reject, or otherwise remove any views, opinions and comments posted or part thereof. You shall ensure that the comment is not inflammatory, abusive, derogatory, defamatory &/or obscene, or contain pornographic matter and/or does not constitute hate mail, or violate privacy of any person (s) or breach confidentiality or otherwise is illegal, immoral or contrary to public policy. Nor should it contain anything infringing copyright &/or intellectual property rights of any person(s).

I agree to the terms of use.

sir by mahesh kumar on 2008-10-10 08:52:09.471994+05:30
sir,better we keep till dec

Reply Forward

CURRENCY by PLAM on 2008-10-10 08:45:17.850001+05:30
Indian currency may lose further ground and dollar is likely to touch Rs 50 in the next two months in the wake of global financial crisis, say exporters and economists. With foreign institutional investors (FIIs) pulling out of the equity markets in the emerging economies, rupee touched a six-year low of 48.47 against dollar on Wednesday. If the prevailing sentiment for withdrawal of portfolio funds continues and RBI does not intervene, the dollar can touch Rs 50 in the next 2-3 months, ICRIER Director Rajive Kumar said. The FIIs have net sold USD 120 million from India in the last three months with the global equity markets receiving a thrashing after collapse of several banks in the US and Europe. With erosion of over 20 per cent rupee value since April this year, exporters are laughing their way to bank on increased realisations, though some of them got trapped in the exotic derivative contracts of the previous year. While they want stability in the foreign exchange market, exporters seem to nurse a desire of the rupee touching 50. "If this trend continues, the domestic currency will touch 50 against dollar in the next two months," Federation of Indian Export Organisations Director General Ajay Sahai said. On the back of windfall resulting from currency depreciation, India's exports surged by 35.1 per cent between April and August this fiscal. However, import increase of 37.7 per cent has left a big trade gap of USD 49 billion in the five months of the current fiscal. The trade gap could exert further pressure on the overall current account situation of the country.

Reply Forward

WAKEUP by RAMAKRISHNA on 2008-10-10 02:20:41.216907+05:30
THE WAY THE CREDIT CRISES IS HITTING WORLD ECONONLY. INDIAN ECOMONY (ESPECIALLY IT) COMPLETLY RELIES IN US AND EUROPE MARKETS MAJORLY, THIS WILL BE REALL BAD HIT FOR INDIA. THE WAY THISNGS ARE GOING RUPEE IS FALLING, I EXPCET THE RUPEE WOULD TOUCH 50 IN 1 OR 2 WEEKS.

Reply Forward