Kolkata / Mumbai: The report of Prime Minister Narendra Modi's meeting in the weekend to review the consistently declining rupee and other economic issues has resulted in a huge recovery in rupee a long time. However, before this, the rupee touched the lowest level of 72.92 on Wednesday. There is also speculation about the growth in interest rates by the RBI in the Prime Minister's meeting. The rupee closed at 72.19 against the dollar on Wednesday, which is 51 paise higher than Tuesday's 72.70.
Stocks improved with the rupee recovering from lower levels. In 10 days, the rupee has fallen by 4% against the dollar and 11.5% in the current year. Half of those fall came after August 1, and it has become the worst performing currency in the emerging markets.
Trade remained in the range of 71.86 to 72.91 before the rupee closed at 72.19 levels. "The rupee will make every effort to make the government and the Reserve Bank, not to overwhelm low levels," the finance ministry said Wednesday. Economic affairs secretary Subhash Chandra Garg tweeted, "There is no fundamental cause for the rupee depreciating since Tuesday. The market operators' reaction seems excessive. "
The Bloomberg Implied Volatility Index closed Wednesday's trading at ending at 8.19 level. On Monday, it touched a three-year high of 8.51 percent. Implied volatility index has gained two per cent since August.
Prime Minister Narendra Modi is likely to take a review meeting in the weekend to curb the continued depreciation in the value of rupees. According to sources, the government can announce steps to curb petrol and diesel prices. It is to be noted that the rupee has been in pressure due to the increase in current account deficit and the adverse impact of trade war between US-China.
India's current account deficit has reached a four-quarter high of $ 15.8 billion in the second quarter. Earlier, according to media reports, the government is likely to announce a deposit scheme for NRIs in collaboration with RBI to attract foreign investment inflows to curb rupee value.
Commodity prices are increasing due to the sharp decline in rupee. It will be seen in RBI's October month credit policy. However, CPI inflation in August has dropped to a 10-month low of 3.69 percent, which is a relief. The Reserve Bank raised the repo rate by 0.25% in August.
Stocks improved with the rupee recovering from lower levels. In 10 days, the rupee has fallen by 4% against the dollar and 11.5% in the current year. Half of those fall came after August 1, and it has become the worst performing currency in the emerging markets.
Trade remained in the range of 71.86 to 72.91 before the rupee closed at 72.19 levels. "The rupee will make every effort to make the government and the Reserve Bank, not to overwhelm low levels," the finance ministry said Wednesday. Economic affairs secretary Subhash Chandra Garg tweeted, "There is no fundamental cause for the rupee depreciating since Tuesday. The market operators' reaction seems excessive. "
The Bloomberg Implied Volatility Index closed Wednesday's trading at ending at 8.19 level. On Monday, it touched a three-year high of 8.51 percent. Implied volatility index has gained two per cent since August.
Prime Minister Narendra Modi is likely to take a review meeting in the weekend to curb the continued depreciation in the value of rupees. According to sources, the government can announce steps to curb petrol and diesel prices. It is to be noted that the rupee has been in pressure due to the increase in current account deficit and the adverse impact of trade war between US-China.
India's current account deficit has reached a four-quarter high of $ 15.8 billion in the second quarter. Earlier, according to media reports, the government is likely to announce a deposit scheme for NRIs in collaboration with RBI to attract foreign investment inflows to curb rupee value.
Commodity prices are increasing due to the sharp decline in rupee. It will be seen in RBI's October month credit policy. However, CPI inflation in August has dropped to a 10-month low of 3.69 percent, which is a relief. The Reserve Bank raised the repo rate by 0.25% in August.
