Riffrag Business & Finance Report

MUMBAI – After the Indian stock Bombay Stock Exchange and National Stock Exchange suspended, the exchange rate rupees follow-up collapse. After the terror attacks in Mumbai, India’s economic performance down.

While trading bonds, stocks, and foreign exchange abolished, indiscriminate selling massive rupees still occur. Rupee traded at 49.880 per USD position.

Before the financial transaction is suspended, Indian stock index or the Bombay Stock Exchange Sensitive Index (Sensex) experienced a very sharp decline to 56 percent.

Therefore, investors panic and sell directly to large-scale. Sell these shares also followed by massive sales of rupees.

According to local analysts make note that the number of economic darkness India. Even darker than the shocks of global economic crisis.

“This tragedy makes foreign investors and businessmen to be worried,” said Ajay Bodke, who is also managing funds of USD872 million in the IDFC Assets Management Co., in Mumbai, India, as quoted by Bloomberg, Kamis (28/11/2008).

According to him, what is done by local investors is the reaction of the terrorist attacks. According to him, the Indian government and relevant authorities need to calm the market.

Until now, the Central Bank of India has not given its official statements. Information that can be collected only on the temporary suspension of trading of foreign exchange transactions, commodity trading, and trading bonds.

Earlier in exactly three years ago in July 2005, while share trading suspension could also be done. Similarly in 1993, after an explosion killed 70 people.

The exchange rate of rupee, the third-worst rate in Asia, due to the economic crisis after a few Asian countries currencies like the Japanese yen tumbled.

In fact, Indian Finance Minister Palaniappan Chidambaram recently said economic growth will rebound again next year.

“Indian economy will be sharply higher at 9 per cent next year from 7 percent earlier this year,” he said