Beggars Smiling!Falling rupee means high food prices for you!The recent depreciation of the rupee against the US dollar has wiped out the “little benefit” that was derived from the softening of international commodity prices, the Finance Minister, Mr Pranab Mukherjee, said here today.
He noted that the increased uncertainty in the Euro Zone on account of the sovereign debt crisis has led to shifting of capital from Europe to the US which has hardened the US dollar against most currencies. The rupee which was Rs 44.4 to a dollar in April has depreciated to Rs 52 as of November 21, 2011.The rupee pared losses after plunging to a record 52.73 a dollar today. It closed at Rs 52.32 as of 5 p.m. on Tuesday.
Meanwhile,the Petroleum Ministry wants Rs 56,600 crore more in cash subsidy to partially compensate the state-owned oil firms for losses they incur on selling fuel below cost. The subsidy sought is over and above the Rs 30,000 crore assistance already promised by the Finance Ministry for the first half of the current fiscal.
He noted that the increased uncertainty in the Euro Zone on account of the sovereign debt crisis has led to shifting of capital from Europe to the US which has hardened the US dollar against most currencies. The rupee which was Rs 44.4 to a dollar in April has depreciated to Rs 52 as of November 21, 2011.The rupee pared losses after plunging to a record 52.73 a dollar today. It closed at Rs 52.32 as of 5 p.m. on Tuesday.
Pranab cautions against over-stretching to reach fiscal deficit target
Meanwhile,the Petroleum Ministry wants Rs 56,600 crore more in cash subsidy to partially compensate the state-owned oil firms for losses they incur on selling fuel below cost. The subsidy sought is over and above the Rs 30,000 crore assistance already promised by the Finance Ministry for the first half of the current fiscal.
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