Current account deficit will be checked at $56 billion : Rajan

Reserve Bank of India (RBI) Governor Raghuram Rajan today held a press conference and said that current account deficit for the current fiscal will be checked at $56 billion, which is much lesser last year’s $88 billion. Here are the highlights from the conference: There has been some turmoil in financial markets all over the…

FIIs pump in over Rs 11,000 crore in the market

Overseas investors have pumped in over Rs 11,000 crore ($1.7 billion) in the Indian stock market this month following new RBI Governor Raghuram Rajan’s announcing measures to boost the weakening rupee and revive economic growth. Moreover, the US Federal Reserve’s decision of leaving its stimulus programme unchanged also encouraged foreign investors to park their funds…

RBI surprises with rate hike; trims rupee support steps

Reserve Bank of India Governor Raghuram Rajan surprised markets in his maiden policy review on Friday by raising interest rates to ward off rising inflation while scaling back some emergency measures put in place to support the rupee. Rajan raised the RBI’s policy repo rate by 25 basis points (bps) to 7.50 percent, defying widespread…

Biggest single-day gain for rupee since January 1998

The rupee posted its biggest single-day gain since mid-January 1998 as the Reserve Bank of India’s (RBI) latest move to shore up the currency by providing dollars to oil firms directly and the relatively aggressive intervention helped. The partially convertible rupee closed at 66.55/56 per dollar, up 3.46 percent on the day, its biggest single-day…

How Aggressively Investors Dumped Emerging Market Bonds This Week

It’s almost unbelievable how rapidly investors are yanking their money out of the Emerging Markets. The sucking sounds particularly loud in the EM debt markets. “Emerging Markets debt-dedicated funds recorded net outflows of $5,578MM (2.19% AUM) for the week ending on June 26, 2013, reports EPFR,” said Morgan Stanley’s Robert Habib. “This is the largest…

S&P affirms negative rating outlook on India’s credit rating.

Standard & Poor’s reiterated its negative outlook on India’s credit rating, which is one notch above “junk”, warning of the need to follow through on reforms and dealing a blow to a government that had recently pitched for an upgrade. The rating agency said the main drag on India’s rating is a high fiscal deficit…

India’s current account deficit to improve to 3.9% in FY’14: Barclays

India’s current account deficit (CAD) is likely to witness a “gradual” improvement in the next two to three years and it is expected to come down to 3.9 per cent of the GDP this fiscal, says a Barclays report. India’s current account balance has weakened significantly since FY2010-11, but we expect an improvement over the…