When the GDP number came out for the Indian economy grew at 5.3% in the fourth quarter of the last fiscal. Impacting the expectation of India growth story of growing more than 7%. The 10-year bond yields fell 3 basis points to 8.49% as concerns over global risk aversion lured investors towards safe-haven government debt.
In the mean time some of my friends wanted to understand the impact View full article »
When INR touched the level of 56 against 1$, the first sms I received “Ab Tak – 56″. One of the thriller movie in Bollywood. The other msg that I received which is now trending in twitter the famous dialogue of an Indian flick “Amitabh Bachchan has demanded at all payments to him be made in dollars instead of INR. Kyunki main aaj bhi gire huye paise nahi uthaata”
The Rupee has been trapped in a vicious circle, the free fall is on the roll, View full article »
When INR touched 55 versus 1 dollar it made the record, for some of the traders it was a key level. From the data on the RBI the dollar has appreciated by approximately 22 per cent in the last 1 year. This is a major move after the crisis of 1991.
Obviously the answer to above is difficult to analyze, because in the normal circumstances demand and supply decide the market determined rates. We do not have free market for the forex. The rupee has never been convertible on capital account. The Reserve Bank of India still has a variety of controls on who may buy foreign exchange and for what purpose in the market. View full article »