FIRST & FOREMOST ASIAN WEEKLY IN EUROPE
VOL 40. ISSUE 29
VOICE
Let noble thoughts come to us from every side
80p
Rupee hits all-time low; Sensex recovers
A depreciating rupee that touched its lowest level in 32 months to close at Rs 52.15 to a dollar - just 5 paise away from its alltime low recorded in March 2009 - dragged down the Bombay Stock Exchange (BSE) Sensex by 425 points or 2.6%, to close below the 16,000 mark, the second time in less than seven weeks. At 2.24 pm on Tuesday the rupee was at 52.31 per dollar, after touching f 52.73, and 0.8 per cent weaker than its previous close of 52.1550/1650. The rupee has fallen by
15% in the past three months, hurting those who send their children abroad to study or take a vacation on foreign shores.
And while this fall will hurt India's huge oil import bill - the main reason why companies raised petrol prices on November 9 -
those remitting money stand to gain. It seems the stock market and currency markets are feeding one another in this downward dive. While currency market traders say lack of foreign inflows and exit of foreign institutional investors (FIIs) led to the rupee's decline - in the past two months, FIIs withdrew $2 billion from the market stock market traders claim that a falling rupee has reduced the returns that investors could have got from the stock markets and are thus exiting India. Continued on page 26
26th November to 2nd December 2011
Turbulence hits other private airlines too After Kingfisher, which is facing financial crunch, now the Jet Airways has expressed the need to raise funds in order to pay off its debt. According to Jet Airways, the depreciation in rupee has impacted debt levels for the company. The current debt in books for Jet Airways stands at Rs 140 billion. According to Jet Airways, the depreciation in rupee has impacted debt levels for the company. Jet Airways has, however, said that their debt would come down by Rs 15 billion in the
next six months. Jet Airways topped the list with a loss of Rs. 7.13 billion , followed by Kingfisher Airlines (Rs. 4.68 billion), SpiceJet (Rs. 2.40 billion) and JetLite (Rs. 1 billion). Continued on page 26
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