Wednesday, November 23, 2011

The rupee declined halted.

The Indian rupee eased in today’s early session despite some negative news flow from the globe. All
the Asian stocks are trading down today and almost all Asian currencies are down v/s the US dollar.
While the Indian rupee managed to gain and is up over a percent at the time of writing.
The RBI on Tuesday eased rules for overseas investors in infrastructure debt funds, allowing foreign
buyers to purchase bonds issued by such funds. Foreign investors can now buy either local or foreign
currency bonds issued by infrastructure debt funds, provided they hold them for three years, the
Reserve Bank of India said in a statement yesterday.
In negative news, the US Commerce Department cut its estimate of GDP to 2% in the July-to-
September period from an initial reading of 2.5%. Although the economy accelerated in late summer,
it is still not growing fast enough to create jobs for most Americans trying to get back to work. The
unemployment rate stood at 9% in October.
In data releases today morning from China, the HSBC flash manufacturing purchasing managers'
index (PMI), the earliest indicator of China's industrial activity, slumped in November to 48, a low not
seen since March 2009.
The MSCI's broadest index of Asia Pacific shares outside Japan fell 0.3% today with the materials and
technology sectors leading losses. The euro edged up about 0.1 per cent to around $1.3520, despite
growing fears about rising bond yields after Spain's borrowing costs hit a record high. The single
currency was boosted by the IMF move to make liquidity available to country's caught up in
contagion from debt woes elsewhere, and also talk of repatriation flows from European banks.

No comments: