Rupee slide persists

The rupee fell the sharpest in a decade on speculation that the trouble on Wall Street would lead to emerging-market asset sell-offs by jittery global investors.The currency hit its lowest level against the dollar in more than two years. The Sensex also fell for a sixth day in tandem with equity markets world wide. It lost a marginal 12.47 points to end at 13,518.80, heading for its first annual loss since 2001.

The rupee may come under more intense pressure as FIIs continue to hawk Indian equities. The Indian currency ended at 46.89/90 against the dollar, off a trough of 46.99-its lowest since July 24, 2006-as banks arbitraged with a weaker overseas market. Dealers suspected RBI intervened to halt the slide just short of 47 against the greenback. JPM organ forecasts the rupee to drop to 47 by the end of the year. The rupee was the second biggest loser among the ten most active currencies in Asia outside Japan on Tuesday.

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Commodities cool down:crude,edible oil decline, steel to soften on global meltdown

After rising steadily for last one year, the prices of critical commodities like edible, crude oils and steel have sharply declines, which would impact the rising graph of inflation.

While international prices of crude oil at the New York Mercantile Exchange on Monday was traded at $116.57 a barrel, down from all time high of $147.27 a barrel in Mid July, the prices of Palmolein and Soyabean oils in the international market have softens.

Both the decline in crude and edible oils is significant to the government's fight against double digit inflation as domestic prices are impacted by volatility in the international market. India imports close to 70% of its crude oil needs and around 50% of edible oil needs.

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