Home / Economy and Business / Rupee falls below 50. Gold loans only upto 60% of the value – RBI move

Rupee falls below 50. Gold loans only upto 60% of the value – RBI move

rupee falls

The Rupee has again fallen and has gone beyond the 50 mark against the U.S dollar. It reached a value of 50.04, against the USD, which is the lowest in two months. The dip has been accredited to the global factors as well as expectations from the RBI on policy changes.

Analysts strongly feel that the RBI would step in to control further weakening of the rupee beyond the 51 levels. Others also opined the domestic election results to have the impact on the economy front, which has resulted in the dip.

Thomson Reuters reports that the Forex Traders are however keeping their fingers crossed to see if the rupee breaks the hundred day moving average of 50.87 value. This would mean that the currency has entered a weak territory and may hit newer lows.

gold

Meanwhile, RBI has taken another bold move to curb the inflating Gold loan markets from the Non banking financials. In a recent directive, the RBI is reported to have laid restrictions on the NBFCs who lend money based on the gold jewellery, to restrain giving loans only upto 60% of the value of the gold.

It would now mean that if you deposit jewels worth 1 lakh rupees, then the institutions can give you a maximum of Rs. 60,000 as the loan against the jewellery.

It was reported that currently, many of the companies extended over 90% money as credit, for the jewels being deposited by the customers. RBI’s move to reign in this segment has come as a bold move.

Back to the stock markets, the benchmark indices continue to stay flat. Stock specific actions have been seen in certain sectors like metals, real estate and telecom.

At 11:30 AM, the Nifty is down by 5357, with 7 points cut (-0.13%).

IDFC from the financial space, is among the top losers with over 3% cuts. Jindal steel has recorded 6% cuts. Other metal counters such as the Tata steel, and SAIL have also seen some cuts. JSW Steel has seen a cut of 2.6%.

Coal India has however seen a surge of 3.5%.

Heavyweight RIL is trading 1% down. ONGC is up by a percent.

Mahindra Satyam and Tech Mahindra have continued to hold on to 4% gains today as well. The two companies are slated for merger, as per the announcement issued yesterday by the corporate boards.


 

 

Related Videos