From a last long waited period, value of rupee was sloping down rapidly against the dollar, there was no scope of it’s strengthen value. But record of early trade on Monday brings a big hope among the investors as rupee gained at 55.29 against the US dollar, higher than Friday’s closing.
According to source report, Trading on Monday opened at 55.29/$ down by 38 paise and quickly rose further to 55.13 level.
“Government foreign currency debt comprises only 7 per cent of total government debt and 5% of GDP. Most of it is owed to multilateral and bilateral creditors and has a maturity profile that keeps annual foreign currency repayments relatively low,” Moody’s told reporters.
As per his statement, recent depreciation trend in rupee is directly effect of depreciation on the government’s own debt repayment capacity.
One who glad most from the sudden rupee’s appreciation against dollar, is of Finance Minister Pranab Mukherjee. Last week he said, “Sensex and Nifty figures are also disappointing. Brent crude price has also moved up, and the quantum of India’s imports is quite substantial, around $160 – 170 bn.”
Mukherjee was in tensed situation from last six days when global Euro crisis boom and the rupee’s rapidly slide. That result a big kick off the Indian stock markets that effect economic growth by increasing downing slope against dollar.
As per media report, U.S. currency has recorded a hit in Index from 20 month high as put high against global currencies, while Euro and Rupee has depreciated, falling more than 5 per cent this year against the dollar.
The bigger sharing partners of falling rupee against increased dollar are importers those highly demanded foreign currency for capital outflows more than selling of exporters.