Millennium Post

6-fold gold import rise ups Nov trade gap by 76% to $16.9 bn

Gold imports stood at $5.61 billion in November this year as against $835.83 million in the corresponding month in 2013, according to the data released by the Commerce Ministry.

Total imports in November, including oil, jumped by 26.79 per cent to $42.82 billion. Oil imports dipped by 9.7 per cent to $11.71 billion. Non-oil imports, however, grew by 49.6 per cent to $31.10 billion.

Merchandise exports grew to $25.96 billion after recording a contraction in October. During April-November, imports were up 4.65 per cent to $316.37 billion, while exports were up 5.02 per cent to $215.75 billion. Trade deficit during this period stood at $100.61 billion as against $96.89 billion in the same period last fiscal.

Meanwhile, rupee  weakened by 65 paise to close at nearly 11-month low of 62.94 against the US dollar due to heavy dollar demand from importers amid falling crude oil prices.

A stronger US dollar in global markets ahead of the US Fed’s meeting starting Tuesday also weighed on the domestic currency, dealers said. At the Interbank Foreign Exchange market, the rupee commenced weak at 62.50 a dollar from previous close of 62.29.

A sudden gust of dollar demand from importers, mainly oil refiners, after global crude oil prices fell to near $62 a barrel weighed on the domestic unit which dropped to a low of 62.95 in day trade.
Later, the rupee settled at 62.94, showing a fall of 65 paise — the biggest fall in last four months — or 1.04 per cent. Previously, it had settled at 63.10 on January 27, 2014.

The Indian benchmark BSE Sensex, which was down by over 245 points at initial stages, recovered and closed slightly lower by 31.12 points or 0.11 per cent.

Foreign portfolio investors sold shares worth $128.75 mn on Sunday, as per Sebi data.

Pramit Brahmbhatt, Veracity Group CEO said, “Indian Rupee slipped down by over 1 per cent for the day; taking cues from the dollar demand from oil companies and almost made a 11 months low. “The trading range for the spot rupee is expected to be within 62.50 to 63.50,” he added.
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