The Indian currency rupee on Wednesday collapsed against the greenback by losing 119 paise - its biggest single day fall in 12 years. The rupee ended the day at Rs 49.30/31, a steep fall of 2.47% or 119 paise over its previous close.
Dealers in foreign exchange said that rupee’s fall to this extent was surprising considering the fact crude prices have come down which should have otherwise strengthened the domestic currency.
Brokers said the Reserve Bank intervened when the rupee breached the 49-level to prevent its further fall. “Exports declining by 15% for Septmeber also cast a shadow over the rupeee,” they said. Continuing captial outflows was anonter crucial factor that led to rupee’s fall. Stocks markets on Wednesday closed weaker with benchmark sensex shedding another 303 points, or 3.08%. With fall the barometer has lost hefty 1,000 points in just two days.
Source: Times Of India
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Prime Minister of India, Manmohan Singh on Monday forcefully assured Parliament that no Indian bank would fail and deposits were safe but also warned that the global financial storm would bring about a temporary slowdown in the Indian economy.
Making a statement in Lok Sabha, the PM said, “Our banks, both in the public sector and private sector, are financially sound and strong, well capitalised and well regulated. There should be no fear of a failure of any bank. In particular, I wish to assure depositors in our banks that their deposits are entirely safe.”
Referring to the RBI announcing a cut of 100 basis points in the repo rate — the rate at which banks can borrow — he said, “Government welcomes this decision. It will have a beneficial effect on interest rate and in combination with other steps to increase liquidity, will help to support economic activity and investment.”
Earlier in the day, finance minister P Chidambaram also welcomed the RBI decision.
Both RBI and government are monitoring the situation and “will ensure the additional liquidity infused into the system translates into actual credit. We will not hesitate to do more if needed,” the PM said. He pointed out that the capital adequacy ratios of all banks were well above prescribed norms and some with lower ratios would be aided in accessing funds.
The PM did, however, underscore that some pain was inevitable. Despite increase in exports in dollar terms during April-August, FDI in the same period totalling $14.8 billion and first quarter growth of 7.9%, he said “we must be prepared for a temporary slowdown in the Indian economy.” He made it plain that no firm estimates were available. Some estimates project GDP to decelerate to 7.5% in the current year while others place it lower at 7%.
Source: Times Of India
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The Delhi high court on Monday told the government that the homosexual trait in a human being cannot be termed as a ‘‘disease” and objected to the contention that if legalised, homosexuality would bring ‘‘devastation” to society.
‘‘Show us one report which says that it is a disease. A WHO paper says that it is not a disease but you are describing it as a disease. It is an accepted fact that it is a main vehicle that causes (AIDS) disease but it is not a disease in itself,” a Bench headed by Chief Justice A P Shah remarked in response to Additional Solicitor General P P Malhotra’s harping on the point that homosexuality was a disease that is responsible for the spread of AIDS in the country.
‘‘AIDS is already spreading in the country and if gay sex is legalised then people on the street would start indulging in such practises saying that the High Court has given approval for it. Legalising it would send a wrong message to our youth,” Malhotra maintained, at which HC took strong exception and said the matter (pertaining to legalising gay sex) was still under consideration and the Centre should not make such a submission.
‘‘Every citizen has the right to lead a decent and moral life in society and the right would be violated if such behaviour (gay sex) is legalised in the country,” Malhotra said arguing that an amendment in section 377 would mean subsequent tinkering around with marriage and divorce laws of each community as all have sodomy as a ground for divorce. The ASG claimed even section 375, which pertains to rape, would need an amendment to change definition of ‘‘consent” if homosexuality was legalised.
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All public places across India will be no smoking zones from today.The ban has mixed response from smokers and non-smokers. However there was no very strict rules followed by police.
Two terrorists were killed and one Delhi police personnel died in Jamia Nagar of south Delhi.
After recent serials bomb blasts in India, Indian Government is planing to setup a Federal Agency to fight againt terrorism more effectively.Minister of State in the Prime Minister’s Office Prithviraj Chavan said that India will soon unveil “more focussed and dramatic measures” to battle terrorism by setting up a federal investigating agency or by restructuring the Central Bureau of Investigation (CBI).
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According to National Security Adviser (India) M K Narayanan SIMI is recruiting at least 20 people daily into its various wings spread across the India. The Students Islamic Movement of India (SIMI) is a banned group of India. SIMI has been renamed as “Islamic Movement”.
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Four security personnel have been killed and one injured in a gun battle with terrorists in Poonch district of Jammu and Kashmir.
Working on a operation, terrorists started firing to which the security personnel retaliated. The encounter is still going on. No militant has been killed so far in the encounter, as far the latest news.
The world’s cheapest car, the TATA Nano, may still roll out from Singur with Tata Motors on Monday expressing hope that the West Bengal government’s new rehabilitation package will evoke a positive response from unwilling land-losers who had refused compensation.
If all goes well, the company could even look at resuming work at the factory site. Sources linked to contractors working at the site said they had been alerted to start work in a “few days”.
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