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Rupee Falls to its Lowest, US Economy Grows, Canada to Join NAFTA Negotiations et al.

Professor of Financial Economics and Part-time Value Investor, Transfin.
Aug 29, 2018 1:18 PM 2 min read


End of Day Wrap-up (Tuesday/ Aug 28, 2018) #Rupee #USDollar #US #China #Canada #Mexico #NIO #AstonMartin #Demonetization #MinistryOfFinance #RBI #Banks #BadLoans #NYSE #LondonStockExchange #TradeDeficit #NAFTA # #Transfin

Editor's Comment: Indian rupee falls to all time low vs. USD at 70.6/$. This comes after the trade deficit widened to a 5-year high to $18bn. The fall in rupee is also driven by the strenthened USD on back of the ongoing US-China trade war.


RBI, in its annual report, says 99.3% of demonetized currency returned.  Post demonetization, RBI spent INR7,965cr on printing new INR500, INR2,000 and other denomination notes during 2016-17.


Ministry of Finance asks RBI to prepare a list of Govt banks and timelines for possible mergers. Ministry of Finance looks to improve the debt laden banking system on India. India is ranked 2nd after Italy in terms of highest bad loan ratio among the World’s largest 10 economies.


Chinese Electric carmaker NIO to IPO on NYSE; Aston Martin also to IPO on London Stock Exchange. NIO, which is yet to turn profitable, is considered the Chinese rival of Tesla and is looking to raise close to $1.3bn. Aston Martin looks to list about GBP1bn on London Stock Exchange later this year.


U.S. GDP grows at 4.2% in the second quarter (strongest pace of growth in nearly four years), above earlier govt. estimates of 4.1% on back of strong business investment. Meanwhile, Consumer Confidence index rises to 18-year high in August on back of increased consumer spending. However, the ongoing trade conflict with China has resulted in the widening of the trade deficit to $72.2bn.


Canada joins US in NAFTA negotiations after US-Mexico agree on trade pact. US and Mexico finalized deals for the next trade pact, as Canada was left out. However, Canada has started trade negotiations with US, to avoid a levy of tariffs by US.