Tag Archive for India

BRICs under pressure – Sober Look

As the emerging markets contagion spreads, the BRIC nations are coming under increasing pressure in the capital markets. As discussed previously Brazil and Russia are witnessing new multi-year/record lows in their currency valuations. The Indian rupee is still above the all-time low (last summer), but at 63.5 rupees to the dollar, we are not far from that record.

Latest on India: rupee in free fall, stagflation setting in, risks of sovereign downgrade and investor panic rising – Sober Look

This is a syndicated repost courtesy of Sober Look. To view original, click here. Reposted with permission. This is beginning to sound like a broken record, but India’s currency has come under severe pressure – again. India’s central bank, the RBI, seems to have completely lost control over the rupee. The currency broke through 67…

The end of cheap US cash claims another victim: Indonesia – Sober Look

This is a syndicated repost courtesy of Sober Look. To view original, click here. Reposted with permission. In a fashion similar to what became known as the “Asian Contagion” in the late 90s, the current stress in emerging economies has been spreading. One of the nations to experience financial stress recently has been Indonesia, Southeast…

The rupee near all-time lows again as RBI confuses the market; economic indicators deteriorate further – Sober Look

India’s authorities are having a tough time clearly defining what they are willing to do in order to stem the rupee’s decline.Reuters: – Mixed signals from the Reserve Bank of India and the government over how to handle the fall in the rupee has contri…

India’s short-term yield goes vertical; RBI struggling – Sober Look

Here is a quick update on India’s ongoing financial stress. Capital outflows from stocks over the past couple of months reached a post-2008 high, prompting Goldman to downgrade the nation’s equity market.

Bloomberg: – Foreigners sold a net $2 billion of domestic debt last month through July 30, extending the record $5.4 billion withdrawal in June. The two-month outflow from stocks reached $2.8 billion, the most since the global financial crisis in November 2008, regulatory and exchange data compiled by Bloomberg show. Goldman Sachs cut its rating on the nation’s shares to underweight in a report dated July 31.

The rupee is trading near record lows as RBI’s recent actions are proving to be ineffective. With liquidity conditions remaining tight, the short end of the government curve is under severe pressure. The one-year note yield has gone vertical, approaching 10%. The yield curve remains heavily inverted, with further economic slowdown sure to follow.

Source: Investing.com


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