Rupee Hits Record Low 66.40, Posts Biggest Day Drop In Nearly 18 Years

[sid_22]

The [url="http://timesofindia.indiatimes.com/topic/Rupee"]rupee[/url] hit a record low on Tuesday and posted its biggest single-day fall in nearly 18 years after the lower house of Parliament approved a nearly $20 billion plan to provide cheap grain to the poor, raising concerns the [url="http://timesofindia.indiatimes.com/topic/Fiscal-Deficit"]fiscal deficit[/url] will blow out even further.

The partially convertible rupee closed at 66.24/25 per dollar after hitting a record low of 66.30, and down 2.9 per cent from its close of 64.30/31 on Monday.

This is the biggest single-day drop for the currency since October 1995, according to [url="http://timesofindia.indiatimes.com/topic/Thomson-Reuters"]Thomson Reuters[/url] data. The 194 basis points fall also marks the rupee's biggest single-day decline in absolute terms ever.

[url="http://timesofindia.indiatimes.com/topic/Finance-Minister"]Finance minister[/url] [url="http://timesofindia.indiatimes.com/topic/P-Chidambaram"]P Chidambaram[/url] said on Tuesday the government would stick to its fiscal deficit target for the year, while announcing cabinet approval for power and infrastructure projects worth Rs 1.83 trillion.

Yet the comments failed to sway investors, with market watchers sceptical about India's ability to attract funds for infrastructure projects in an [url="http://timesofindia.indiatimes.com/topic/Economy"]economy[/url] growing at a decade-low of 5 per cent.

The rupee has been beaten down 17 per cent so far in 2013 despite frantic attempts by the government and central bank to shore it up.

Indian [url="http://timesofindia.indiatimes.com/topic/Stock-Markets"]stock markets[/url] were also hit on Tuesday, raising the prospect of further capital outflows, with the benchmark [url="http://timesofindia.indiatimes.com/topic/Bse"]BSE[/url] index falling 3.2 per cent and the broader NSE index ending down 3.45 per cent.

Overseas investors sold over $800 million worth of shares in the previous seven sessions through Monday, adding to pressure on the rupee.

"The [url="http://timesofindia.indiatimes.com/topic/Food-Security-Bill"]Food Security Bill[/url] is the key reason for the rupee's fall on Tuesday. It would open floodgates for (credit) ratings downgrades, if the fiscal deficit is not reined in," said Ashtosh Raina, head of [url="http://timesofindia.indiatimes.com/topic/Foreign-Exchange"]foreign exchange[/url] trading at [url="http://economictimes.indiatimes.com/hdfc-bank-ltd/stocks/companyid-9195.cms"]HDFC Bank[/url].

The government hopes to contain the fiscal deficit at 4.8 per cent of [url="http://timesofindia.indiatimes.com/topic/Gross-Domestic-Product"]gross domestic product[/url] for the year ending in March, but fears are growing it will be tempted to launch a flurry of fresh populist spending ahead of elections which are due by May.

The Food Security Bill, budgeted to cost Rs 1.35 trillion annually, is a key part of the ruling Congress party's strategy to win re-election in polls, with its focus on selling subsidised wheat and rice to 67 per cent of its population of 1.2 billion.

[img]http://www.ski-epic.com/gifs/g009_idi_amin_laughing_soldier.gif[/img]

[macha]

[img]http://lh6.googleusercontent.com/-cra3gKxdXjs/TszlliFDnFI/AAAAAAAAACM/O9hR63oz55I/w317/buraco.gif[/img]

[sid_22]

[quote name='django' timestamp='1377609938' post='1304169103']
[img]http://lh6.googleusercontent.com/-cra3gKxdXjs/TszlliFDnFI/AAAAAAAAACM/O9hR63oz55I/w317/buraco.gif[/img]
[/quote]

Don't do that man................ soniamma will give free food................ all she needs is a vote from you... [img]http://www.ski-epic.com/gifs/g009_idi_amin_laughing_soldier.gif[/img]

[macha]

[quote name='sid_22' timestamp='1377610088' post='1304169109']
Don't do that man................ soniamma will give free food................ all she needs is a vote from you... [img]http://www.ski-epic.com/gifs/g009_idi_amin_laughing_soldier.gif[/img]
[/quote]


adii sachii poointeyy anaa bagaundu nina.....[img]http://www.desigifs.com/sites/default/files/2013/GSB3.gif?1370457845[/img]

[ManOnFire]

[quote name='sid_22' timestamp='1377610088' post='1304169109']
Don't do that man................ soniamma will give free food................ all she needs is a vote from you...
[/quote]

all we need is love prema kadal

[sid_22]

[quote name='django' timestamp='1377610169' post='1304169112']


adii sachii poointeyy anaa bagaundu nina.....[img]http://www.desigifs.com/sites/default/files/2013/GSB3.gif?1370457845[/img]
[/quote]

Parliament free food written speech ichindigaa...... papam cold and headache vachindi anta....... anduke poindi hospital ki..... indian media kukka hadavidi mamulega..............daaniki loose motions ayyina............. Sonia gandhi health is in crisis ani breaking news vestaru.......... India ni diwala teesevaruku adhi podhu...........[img]http://www.ski-epic.com/gifs/g009_idi_amin_laughing_soldier.gif[/img]

[Chitti_Robo_Rebuilt]

[Nellore Pedda reddy]

ee chidambaram, manmohan gallu em chesthunnaru ra babu....malla okkodu cambrdige, oxford graduates....cheppukodanike

[pratyu]

daridram bhayaaa..... india developing ninchi developed ki veltundi ani chustuntey... ippudu yenni rojulu developing ga vutundo underdeveloped ki velakaunda chudalii