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ASIAN CURRENCIES SLIPPED AGAINST DOLLAR DUE TO SLOWER GLOBAL GROWTH

Friday: A lot of Asian currencies fell against U.S. dollar as a result of slower growth in the global economy. Most countries kept their monetary policies unchanged as to expect the country’s growth and inflation will get on track till next quarter. Government’s data for the first quarter gross domestic product was released few days back, confirmed that the country is experiencing the weakest year on year growth from last 10 years. Indian Rupees slipped 40 paisa against dollar today after two consecutive days of currency depreciation. With global tensions, Chinese yuan is trading at 6.720 per dollar, Malaysian ringgit fell by 0.2 per cent, Indonesian rupiah and Thai baht fell down 0.1 per cent each but Singapore’s dollar strengthened 0.5 per cent today against the strongest currency. Investors are awaiting China’s Trade data of March to see if Beijing’s policy measures have helped the country in its growth rate. The rupee softened 0.3 per cent and currently trading at 69.11 per dollar more than expected assumption of retail inflation data. The Retail inflation data is expected to grow in March due to slightly higher prices in food products. Reserve Bank of India said that the inflation is under their medium term target of 4 per cent. If inflation remains under control, there is high chances that RBI would announce another rate cut this year.