Business Standard
12th March
74: The rupee crossed the 74 mark against the dollar in intra-day trade on March 6.
- The Indian rupee has come under pressure in recent days and is expected to soon touch the 75 mark against the US dollar.
- Till March 5 (closing 73.32), the rupee had fallen 2.87 per cent against the greenback over the past month.
- All this is happening primarily because of the risk-off sentiment that has gripped investors in the wake of the Coronavirus scare.
- Foreign institutional investors (FIIs) have pulled out Rs 3,419 crore from the Indian equity market, and Rs 2,114 crore from the debt market, in March so far.
- Another factor that has contributed to the rupee's weakness is the RBI's decision to take control of YES Bank, India's fifth-largest private sector bank. This has exacerbated the risk-off sentiment in the Indian currency market.
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A few links for further reading
Invest and emigrate
The great Indian dream of settling abroad is achievable if one has a few crores to invest. Rich nations offer a variety of investment options in a quid pro quo arrangement: immigrants get a better quality of life and revenue from them helps these countries’ finances. Wealthy Indians, troubled by polluted cities and the red tape holding up entrepreneurship, may want a quick ticket out of the country. Sanjay Kumar Singh lists a range of options: from a Canadian province’s investor programme to America’s US EB-5 plan.
Small savings schemes
Investors in small savings schemes breathed a sigh of relief when the government announced on October 1 that interest rates on these instruments would not be revised for the fourth quarter of the calendar year. With the economy witnessing a slowdown, and the stock markets also turning volatile, many investors are looking for alternative avenues to park their savings. Small savings schemes, with their sovereign guarantee, have emerged as a viable alternative.
Hard path to growth
The signals for the economy are not positive: overall demand is yet to pick up; the share of total exports in India’s GDP is declining, and industrial output pattern remains worrying.