INR continued to depreciate against USD and crossed the psychological level of 60 & closed at all time high of 60.72 on 26th June . ( INR has depreciated by 7.6% since last Month closing of 56.51)
Why INR is depreciating??
1. RBI not intervening strongly as its Forex reserve is not enough to support such an action
2. FII exit from Indian Financial Market (Equity & Debt) still continues .
3. No action /reform announcement from Government
4. Global Financial Market witnessing heavy volatility.
5. USA Federal reserve plan of withdrawing Dollar stimulus still influencing strongly FX Market all over World .
What may boost INR ??
1. Gold Import is expected to come down in June (due to several restriction imposed by Govt.)
2. Government is likely to liberalize FDI limit in various sector (Defense, Insurance, and Multi Brand Retail)
3. Government may issue NRI Bond (to mobilize USD 20 Billion) to boost falling Rupee as done in the year 1998
Some other update
1. Most Emerging Economy Currencies continued to depreciate against USD
2. China Banking sector facing liquidity crisis, Interbank Lending rate touched 25%.
3. Greece & Italy approaching towards fresh crisis as its Macro Economic Factor not improving and Borrowing cost rising
4. As per latest “FDI confidence Index “USA at No1, China at No2 & India at No 5 position.
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