Monday, 26 October 2009

India: Rupee rolls up to cheer up remittances

Saturday, Mar 15, 2008

Gulf News

The rupee's depreciation in the past few weeks should bring cheer to the millions of Indian expatriates in the Gulf. The decline is expected to continue in the coming months as turbulent stock markets and a widening trade deficit take their toll.

The rupee has weakened more than two per cent against the dollar so far this year, pressured by equity outflows and a severe shortage of spot dollars in the market. Curbs on foreign borrowing imposed by the government last year and the global credit woes caused by the US subprime crisis have also cut inflows.

After gaining more than 12 per cent in 2007, the rupee has fallen to around 40.5 per dollar, its weakest since mid-September and farther away from a near 10-year high of 39.16 in November. [Read more]

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