Tuesday, May 31, 2011
No Surprise Again… Ireland Needs More Cash & Greece Ready To Sink further: The Fundamental View http://bit.ly/jsZY32
Monday, May 30, 2011
Sunday, May 29, 2011
Saturday, May 28, 2011
Friday, May 27, 2011
Thursday, May 26, 2011
Wednesday, May 25, 2011
Tuesday, May 24, 2011
Monday, May 23, 2011
Sunday, May 22, 2011
Friday, May 20, 2011
Russia's largest gold miner Polyus Gold plans to merge with an international gold mining com... http://tinyurl.com/3snaoxe
Thursday, May 19, 2011
Wednesday, May 18, 2011
IMF chief on suicide watch in jail: report: International Monetary Fund chief Dominique Strauss-Kahn, who is faced... http://bit.ly/mp0i95
Tuesday, May 17, 2011
Rupee could depreciate by 20% in two years
NEW DELHI: The Indian Rupee may depreciate by around 20 per cent during next two years on account of dip in confidence about the domestic economy leading to outflow of funds.
According to a report by financial and business reserach firm Evalueserve, there will be pressure on the Rupee unless steps are taken to fix certain structural issues like high current account deficit and dwindling investments.
"During the next two years the probability of the INR (Indian Rupee) to depreciate is the highest (about 50 per cent) as compared to an appreciation or a status quo scenario," Evalueserve said, adding that the depreciation could be in the range of around 20 per cent.
During the past 12 months, the INR has traded in a relatively narrow range between 47.33 and 43.99 to the USD.
"However, the pressure on its stability seems to become more evident," it said.
Evalueserve said INR's depreciation could be fuelled by exit of FII money and lack of investor confidence on account of governance issues, besides high current account deficit (which is the net flow of income out of the country, barring capital movements).
"Even a relatively orderly outflow of USD 15 billion of FII money over a year could result in the INR depreciating by 22-30 per cent. This could imply an exchange rate in the range of INR 55-60 to every USD," it said.
The situation could be even worse in case the outflow in more faster.
Foreign funds have pulled out nearly Rs 3,400 crore from the Indian stock market during the first half of May as interest rate pressures continue to mount.
"This risk (outflow) is also heightened by the fact that India's capital markets are very shallow and do not have the capacity to absorb even moderate external shocks," it said.
Evalueserve pointed to structural factors like the high inflation, which has been blamed on supply side challenges, problems of governance as shown by recent scams, and high deficits.
"Inflation is at an all-time high... The monetary policy changes undertaken by the government to control inflation have been ineffective," the report said, attributing inflation to supply side challenges including lack of infrastructure.
It said that India is the only BRIC economy where Foreign Direct Investment (FDI) has shown a fall. FDI fell to USD 19.4 billion in 2010-11 from USD 25.8 billion in 2009-10.
"This is troubling as FDI is an important indicator of investors' faith in a country's long-term prospects. Foreign Institutional Investment has been buoyant, but these funds are volatile by nature and are prone to 'flight risk' at the first signs of trouble, something that happened during the financial crisis," Evalueserve said.
It also blamed the recent scams -- as highlighted by the 2G spectrum and CWG case -- for creating a perception of governance deficit in India.
"This, combined with regulatory and tax uncertainty, will deter many foreign investors," the report said.
While the government has not been able to liberalise sectors like insurance for foreign players, the Goods and Services Tax had to be postponed due to lack of consensus among political parties.
Evalueserve also said the ongoing political crisis in part of Middle East and North Africa can seriously hurt remittances. The MENA region contributes to a substantial chunk of USD 55 billion remittance received annually from Indians residing abroad.
Regarding deficits, it said: "The government finances are in a bad shape and the combined central and state government deficit has stubbornly stayed around 10 per cent of GDP."
The RBI had earlier this month said it expects India's current account deficit to be around 2.5 per cent of GDP in 2010-11.
The report said that while such a rate is normal for growing economies, in India's case it bodes ill due to lack of government savings.
"Moreover, given India's rising import bill and threat to remittances, the deficit will remain high in the near future, creating pressure on the INR," it said.
Source: http://economictimes.indiatimes.com/markets/forex/rupee-could-depreciate-by-20-in-two-years-report/articleshow/8394512.cms
NEW DELHI: The Indian Rupee may depreciate by around 20 per cent during next two years on account of dip in confidence about the domestic economy leading to outflow of funds.
According to a report by financial and business reserach firm Evalueserve, there will be pressure on the Rupee unless steps are taken to fix certain structural issues like high current account deficit and dwindling investments.
"During the next two years the probability of the INR (Indian Rupee) to depreciate is the highest (about 50 per cent) as compared to an appreciation or a status quo scenario," Evalueserve said, adding that the depreciation could be in the range of around 20 per cent.
During the past 12 months, the INR has traded in a relatively narrow range between 47.33 and 43.99 to the USD.
"However, the pressure on its stability seems to become more evident," it said.
Evalueserve said INR's depreciation could be fuelled by exit of FII money and lack of investor confidence on account of governance issues, besides high current account deficit (which is the net flow of income out of the country, barring capital movements).
"Even a relatively orderly outflow of USD 15 billion of FII money over a year could result in the INR depreciating by 22-30 per cent. This could imply an exchange rate in the range of INR 55-60 to every USD," it said.
The situation could be even worse in case the outflow in more faster.
Foreign funds have pulled out nearly Rs 3,400 crore from the Indian stock market during the first half of May as interest rate pressures continue to mount.
"This risk (outflow) is also heightened by the fact that India's capital markets are very shallow and do not have the capacity to absorb even moderate external shocks," it said.
Evalueserve pointed to structural factors like the high inflation, which has been blamed on supply side challenges, problems of governance as shown by recent scams, and high deficits.
"Inflation is at an all-time high... The monetary policy changes undertaken by the government to control inflation have been ineffective," the report said, attributing inflation to supply side challenges including lack of infrastructure.
It said that India is the only BRIC economy where Foreign Direct Investment (FDI) has shown a fall. FDI fell to USD 19.4 billion in 2010-11 from USD 25.8 billion in 2009-10.
"This is troubling as FDI is an important indicator of investors' faith in a country's long-term prospects. Foreign Institutional Investment has been buoyant, but these funds are volatile by nature and are prone to 'flight risk' at the first signs of trouble, something that happened during the financial crisis," Evalueserve said.
It also blamed the recent scams -- as highlighted by the 2G spectrum and CWG case -- for creating a perception of governance deficit in India.
"This, combined with regulatory and tax uncertainty, will deter many foreign investors," the report said.
While the government has not been able to liberalise sectors like insurance for foreign players, the Goods and Services Tax had to be postponed due to lack of consensus among political parties.
Evalueserve also said the ongoing political crisis in part of Middle East and North Africa can seriously hurt remittances. The MENA region contributes to a substantial chunk of USD 55 billion remittance received annually from Indians residing abroad.
Regarding deficits, it said: "The government finances are in a bad shape and the combined central and state government deficit has stubbornly stayed around 10 per cent of GDP."
The RBI had earlier this month said it expects India's current account deficit to be around 2.5 per cent of GDP in 2010-11.
The report said that while such a rate is normal for growing economies, in India's case it bodes ill due to lack of government savings.
"Moreover, given India's rising import bill and threat to remittances, the deficit will remain high in the near future, creating pressure on the INR," it said.
Source: http://economictimes.indiatimes.com/markets/forex/rupee-could-depreciate-by-20-in-two-years-report/articleshow/8394512.cms
Monday, May 16, 2011
US Fed debt hits limit w/o any obvious resolution. US Dollar increasingly vulnerable, supporting recovery in Gold http://ping.fm/YVWjk
IMF chief submits to DNA exam ahead of New York court date on sex assault charges as police claim he tried to flee... http://bit.ly/jCeriU
"IMF Chief Allegedly Sexually Assaulted A Journalist In 2007" http://ping.fm/A7kwl -sQuareindia Advisory nEws Desk
Euro slumps to seven-week low as IMF chief arrested: http://ping.fm/ZXA4Q -sQuareindia Advisory Private Limited.
"IMF to sell gold to raise Bail for Strauss-Kahn" http://bit.ly/leGNrn -sQuareindia nEws Desk @ www.sQuareindia.com
Sunday, May 15, 2011
Saturday, May 14, 2011
Thursday, May 12, 2011
In past 18 months, the U.S. has criminally charged 47 hedge-fund managers and others with insider trading http://ping.fm/uMLp4
IEA cuts global oil demand growth forecast http://bit.ly/mU2jiI -sQuareindia Advisory nEws department @ www.sQuareindia.com
Wednesday, May 11, 2011
Facebook may have leaked your personal information - Symantec http://bit.ly/kKxUFj -sQuareindia nEws Department
Tuesday, May 10, 2011
Wholesale Inventories in U.S. Increase 1.1%; Sales Jump 2.9% http://bloom.bg/jqu352 -sQuareindia Advisory Private Limited
ECB Gold reserves unchanged at 350.668 billion euros in the week ending May 6 http://bit.ly/iQWJbm -sQuareindia Advisory Private Limited.
Mississippi swelling raises gasoline supply fears http://bit.ly/l8R7We -sQuareindia Advisory Private Limited.
Monday, May 9, 2011
4,000 millionaires paid no federal income tax last year. Fair or unfair? Discuss: http://bit.ly/m5V1BQ -sQuareindia Advisory Private Limited
"U.S. Gov't selling stuff to save Dollar" For Sale: 14 bridges/monuments, 199 roads, 1 railroad, 1,010 warehouses. http://ping.fm/t5boz
US stocks were set to open modestly higher as Oil, Gold & Silver prices continued to climb http://bit.ly/mCDNvm -sQuareindia Advisory Pvt. Ltd.
Sunday, May 8, 2011
A novel way to combat corruption: India’s chief economic adviser wants to legalize some kinds of bribe-giving http://ping.fm/1AVaK
Fast-growing Beijing might have upper hand over U.S. in discussions between world's to biggest economies: http://ping.fm/ZWoH5
Saturday, May 7, 2011
Friday, May 6, 2011
See reactions to bin Laden's killing and a photo gallery of Obama's trip to ground zero http://ping.fm/3SL54
Thursday, May 5, 2011
Central bankers will get no help on inflation here: World Food Prices Remain High; Weather Threatens Grains http://ping.fm/t5dsw
Germany urges Portugal to Sell their Gold Reserves while Russia, Thaliand & Mexico Diversify out of Euros http://ping.fm/Bp70r
Wednesday, May 4, 2011
Tuesday, May 3, 2011
Monday, May 2, 2011
Sunday, May 1, 2011
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