Rupee reached an all time low at 53.52 per US$ early in the day. But in afternoon it recovered somewhat at 53.28. The demand for dollar from banks and importers are getting strong and capital outflows from foreign funds are increasing. The euro has also weakened as the confidence in Europe staggers. The $ seems to be on a recovery ride. Rupee has been Asia's worst performing currency this year and the outlook still remains bearish. The trade deficit for Indian for the fiscal year ending March 2012 is expected to widen to $155-160 billion. The previous fiscal year the deficit was $104.4.This situation might further weaken the rupee.
No comments:
Post a Comment