Wednesday, August 28, 2013

Gold Price in Indian Rupees Turns Positive for 2013

As predicted on this blog a mere 8 days ago the gold price in Indian Rupees has just turned positive for 2013 and in a big way. Here is what I wrote on the 20th Aug. "the INR price for gold is only down 4.7% YTD. Give it a week or two of rising gold prices and falling Rupee the gold price in INR will turn positive for the year."

From The Times of India

Article link

MUMBAI: The rupee plunged to a new record low of 68.75 per dollar in the late morning trade on Wednesday on persistent dollar demand from banks and importers due to further fall in equity market amid rise in crude oil prices.

The rupee resumed lower at 66.90 per dollar as against the last closing level of 66.24 per dollar at the Interbank Foreign Exchange (Forex) Market and dropped further to an all-time low of 68.75 per dollar at 10.45am.

Persistent capital outflows by foreign funds also affected the rupee value against the dollar, a forex dealer said. Foreign Institutional Investors (FIIs) sold shares worth a net Rs 1,373.99 crore on Tuesday as per the provisional data from stock exchanges.