The rupee leads the losers’ chart among Asian currencies in the April-June quarter by plunging 8.6% due to massive capital outflows on worries of withdrawal of the US stimulus and a reported cash crunch in China.
The rupee was battered in the quarter as foreign investors sold a whopping $7 billion in June alone in debt and equities, recording the worst fall in a decade among the Asian currencies. The rupee closed at an all-time low of 60.72 against the US dollar on June 26 on heavy capital outflows and month-end dollar demand from importers. Since May 27, FIIs have pulled out nearly $8 billion from the domestic market after pumping over $15 billion into the country since January.
At the close of the last trading day of the first quarter on Friday, the rupee had lost 8.6% against the dollar, the steepest percentage fall since 2003.
Among other weak Asian currencies, Thai baht has lost 5.8% in the quarter, the Philippine peso shed 5.6%, the South Korean won lost 2.7%, the Singaporean dollar lost 1.9%, and the Malaysian ringgit slid 2.5%. Rupee is the second worst performer among the BRICS currencies after the South African rand. At the third slot is the Brazilian peso.
The rupee had attempted a recovery on Friday with a gain of 91 paise, or 1.4%, to close at 59.385. This was due to the unexpected improvement in the current account deficit, which in the March quarter fell to 3.6% against 6.7% in the December quarter.
For the fiscal ended March 2013, the CAD stood at 4.8% of the GDP, which again was an unexpected improvement from a consensus 5.2%, but still higher than the previous fiscal when it was 4.2%, according to the data released by the RBI two days in advance.
The only tangible action the RBI did this year was that it released the data before the market hours on Friday, which also led to massive 2.75% rally on the Sensex.
The rupee was battered in the quarter as foreign investors sold a whopping $7 billion in June alone in debt and equities, recording the worst fall in a decade among the Asian currencies. The rupee closed at an all-time low of 60.72 against the US dollar on June 26 on heavy capital outflows and month-end dollar demand from importers. Since May 27, FIIs have pulled out nearly $8 billion from the domestic market after pumping over $15 billion into the country since January.
At the close of the last trading day of the first quarter on Friday, the rupee had lost 8.6% against the dollar, the steepest percentage fall since 2003.
Among other weak Asian currencies, Thai baht has lost 5.8% in the quarter, the Philippine peso shed 5.6%, the South Korean won lost 2.7%, the Singaporean dollar lost 1.9%, and the Malaysian ringgit slid 2.5%. Rupee is the second worst performer among the BRICS currencies after the South African rand. At the third slot is the Brazilian peso.
The rupee had attempted a recovery on Friday with a gain of 91 paise, or 1.4%, to close at 59.385. This was due to the unexpected improvement in the current account deficit, which in the March quarter fell to 3.6% against 6.7% in the December quarter.
For the fiscal ended March 2013, the CAD stood at 4.8% of the GDP, which again was an unexpected improvement from a consensus 5.2%, but still higher than the previous fiscal when it was 4.2%, according to the data released by the RBI two days in advance.
The only tangible action the RBI did this year was that it released the data before the market hours on Friday, which also led to massive 2.75% rally on the Sensex.
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