INR has performed very miserably against USD in the Month of May 2012 . It has touched the historical low of 56.52 . So many reasons are there for the rupee depreciation this time . Earlier we had been citing the Global reason but this time it is Global and Domestic both . Globally the Developed Economy are showing no sign of improvement . Europe will take much longer time to recover as they need to first resolve the currency & Debt crisis before taking any step for Growth . USA has somehow managed its Debt crisis last year and Corporate sector are also doing reasonably good now . But the Economy is not showing any sign of improvement . The latest unemployment data has given more concern to Economist & policy maker around the World . China the leader of Asia Economy has also some moderation . Due to all these factors Global Investors are relying more on USD and dumping other currency . Euro continued to be under pressure against USD and has touched all time low of 1.23 although it has recovered to some level up in the last few days . Almost all Global currency depreciated against USD in last 30 days . Major looser are New Zeland Dollar by 7.3% , Swedish Croner by 6.3% and Russian Rubble by 9.24%. Concern over India Fundamentals like decresing GDP growth , pressure of inflation going up again , deteroorating Trade & Fiscal deficit is also dragging the rupee down . The prolonged pause in policy announcement in India has also disturbed the Global Investor which got furthur aggraveted due to Tax confusion . This time RBI is also not interveniong to the Market to keep rupee stronger as it has low FXreserve .
It is expected that after touching low of 56.52 rupee will take some rest for now and may come down to 53~54 level . This trend was also seen last time and many time earlier .
It is expected that after touching low of 56.52 rupee will take some rest for now and may come down to 53~54 level . This trend was also seen last time and many time earlier .
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