USA’s S&P missile batters Rupee, Sensex
4 Sep 2013 12:12 AM GMT
The US establishment relaunched its assault on the rupee on Tuesday, this time through a statement by Standard & Poor’s, the private American rating agency which was highly discredited during the global mortgage and financial meltdown of 2008. ‘We have a negative outlook on India. We think the chances of a downgrade in the next one to two years is one out of three,’ S&P analyst Kim Eng Tan told a press conference in Seoul, South Korea, according to a report.
He described the chance of a downgrade for India as higher than that of Indonesia. The three American private rating agencies — Standard & Poor’s, Moody’s and Fitch — have for decades been utilised by the USA as an instrument to force developing nations to open up their economies to US goods & services, give up raw materials to American firms at throwaway prices and allow US capital unfettered access inside them.
The already bad situation in the Indian markets was worsened later on Tuesday when Russian media said that the country’s Defence Ministry had detected the launch of two ballistic ‘objects’ towards the eastern Mediterranean, heightening concerns about a US-led military invasion of Syria. However, Israel later clarified that it had carried out a joint missile test with America in that area, setting to rest all the worries.
As a combined result of the S&P and Russian media statements, the rupee ended 163 paise down to 67.63 against the dollar and the Bombay Stock Exchange’s (BSE) benchmark 30-share Sensex nosedived by 651.47 points (3.45 per cent) to 18,234.66. The National Stock Exchange’s (NSE) benchmark index Nifty tumbled by 209.30 points (3.77 per cent) to 5,341.45 after touching a low of 5,323.75. With the markets in doldrums, gold once again surfaced as a safe haven for investors. The precious metal surged by Rs 1,610 to Rs 34,370 in Kolkata, Rs 970 in Mumbai, Rs 440 in Delhi and Rs 350 in Chennai.
He described the chance of a downgrade for India as higher than that of Indonesia. The three American private rating agencies — Standard & Poor’s, Moody’s and Fitch — have for decades been utilised by the USA as an instrument to force developing nations to open up their economies to US goods & services, give up raw materials to American firms at throwaway prices and allow US capital unfettered access inside them.
The already bad situation in the Indian markets was worsened later on Tuesday when Russian media said that the country’s Defence Ministry had detected the launch of two ballistic ‘objects’ towards the eastern Mediterranean, heightening concerns about a US-led military invasion of Syria. However, Israel later clarified that it had carried out a joint missile test with America in that area, setting to rest all the worries.
As a combined result of the S&P and Russian media statements, the rupee ended 163 paise down to 67.63 against the dollar and the Bombay Stock Exchange’s (BSE) benchmark 30-share Sensex nosedived by 651.47 points (3.45 per cent) to 18,234.66. The National Stock Exchange’s (NSE) benchmark index Nifty tumbled by 209.30 points (3.77 per cent) to 5,341.45 after touching a low of 5,323.75. With the markets in doldrums, gold once again surfaced as a safe haven for investors. The precious metal surged by Rs 1,610 to Rs 34,370 in Kolkata, Rs 970 in Mumbai, Rs 440 in Delhi and Rs 350 in Chennai.
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