INR depreciation continued and touched 10 Months low of 56.31 ( 4.6% fall since 1st May ) . The factor which is impacting INR fall are as follows :
US central Bank indicate to stop / reduce Bond buying program (QE3) as its Economy has started showing . improvement . This will lead to less USD liquidity à lesser flow to Emerging Economy à USD appreciation .
USD appreciating Globally against major Currencies . USD index which is a composition of six major international currency touched 3 year high of 84.50
YEN depreciated 16% against USD so far this Year touched 4 ½ year low (103.78)
Euro is showing continuous weakness against USD due to EURO zone Economic concern
In view of Central election of India in 2014 , no major development expected on Economic reform
Higher trade deficit in April ,13 ( USD17.8 Billion) . Gold Import up by 138% in April (YOY )
US central Bank indicate to stop / reduce Bond buying program (QE3) as its Economy has started showing . improvement . This will lead to less USD liquidity à lesser flow to Emerging Economy à USD appreciation .
USD appreciating Globally against major Currencies . USD index which is a composition of six major international currency touched 3 year high of 84.50
YEN depreciated 16% against USD so far this Year touched 4 ½ year low (103.78)
Euro is showing continuous weakness against USD due to EURO zone Economic concern
In view of Central election of India in 2014 , no major development expected on Economic reform
Higher trade deficit in April ,13 ( USD17.8 Billion) . Gold Import up by 138% in April (YOY )
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