Indian rupee fell to below $ 68 per share to a record low, the stock plunged on Wednesday, growing pains, an intense economic challenges facing the country and the volatile global markets, foreign investors will continue to sell.
Foreign investors sold nearly $ 100 million of Indian stocks on Tuesday in eight session - a worrisome prospect given that a substantial share of the country's source of capital inflows, net purchases so far this year total $ 12 billion.
Partial convertibility of the rupee hit a record low of 68.75, the day down 3.7% last Tuesday in the 18 years since the release of the largest single-day percentage drop.
"It is impossible to put any real worth Rs, and said:" Uday Hart, UCO Bank's foreign exchange dealers.
The need to attract foreign investment, is a current account deficit of the country plunged a record Rs is a key reason behind the key. However, policy makers have been trying to come up with measures that can convince them to a stable currency, and attract funds into the country market.
Failure is a growing source of tension in India, when a possible US-led military strike Syria fears hit Asian markets, there are prospects that the Fed will end early next month to further improve its cheap money worries.
In its latest move, the government late Tuesday proposed a task force to study a currency swap agreement, measure, analysts said, if you carry out time is U.S. dollars or other major currencies, market demand, may cause some ease.
Bhatt said: "Let's see what the authorities do, but if the government can come up with some really big with some of the country's currency swap arrangements, which can be a strong positive."
Rupee fell by about 19 percent so far this year, far Asian currencies tracked by Reuters, the largest decline.
Meanwhile, India's main NSE index fell more than 2 percent, while the 10-year bond yield rose to 9.04% is high.
Lack of confidence
Rupee failed to rebound, despite the adoption of a series of measures, policy makers, including non-recurring measures, the central bank's liquidity, announced last month and action to curb gold imports and cut India's oil import bill.
Whether it can be enough to maintain a given undoubtedly surging bond yields, threats raise borrowing costs throughout the economy has slowed, while the global oil and gold - the country's two largest import - prices soared this week.
Foreign investors have begun to reduce their stock positions, the net sales of 3.5 billion dollar stock since July began.
In the bond market, foreign investors have sold more seriously, and outflows reached $ 450 million so far this year.
Finance Minister P. Chidambaram said on Tuesday that the government will need to do more to revive economic growth slowest decade, narrowing current account deficit reached a record high of 4.8 percent of gross domestic product (GDP) in March this year end.
These views overtrumped infrastructure projects approved by the Government deficit concerns, this week, the Indian lower house of parliament approved a 1.35 trillion rupees, plans to provide cheap poor gain.



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