Why INR depreciation continued ?

Why INR depreciation continued ??

Touched 12 Months low of 57.01  ( Lost 5 % in May 13 )

 

key reason

 

§ Falling Equity Market due to future growth concern .Stock Market crashed by 700 Points  last week .

§ Concern on Current A/c deficit & inflation indicates that  interest rate  may not be cut by RBI in June  review Meeting .

§ FII,s selling  Indian Bond . INR 11,300 Cr  worth Bond sold  since 22nd May as they are not finding it lucrative  vs US Bond

§ India imported 162 MT Gold (May 13).World Gold Council  projected India Gold Import  may increase by 200% in Q2/13 .

 

Why it may bounce back !!

 

§ RBI put restriction on Gold Import  to certain segment of Importer .  LC to  be opened only  on 100% cash  margin .

§Government  hike Import Duty  on Gold by 2% to 8% . This is the third  hike  in last one year  .