Sunday, 16 June 2019
Latest news
Main » USA dollar soars to Rs134 in interbank market

USA dollar soars to Rs134 in interbank market

09 October 2018

However, the International Monetary Fund cuts its global economic growth forecasts for 2018 and 2019, saying that trade policy tensions and the imposition of import tariffs were taking a toll on commerce while emerging markets struggle with tighter financial conditions and capital outflows.

China was set to grow by 6.2 in 2019, down from the 6.4 percent projected last July.

The IMF warns that risks highlighted in previous reports "have become more pronounced or have partially materialized" in the real world.

The IMF said the balance of risks was now tilted to the downside, with a higher likelihood that financial conditions will tighten further as interest rates normalise, hurting emerging markets further at a time when US-led demand growth will start to slow as some tax cuts expire.

China has responded in kind with its own barrage of levies, rattling nerves especially among other Asian economies and already vulnerable countries like Argentina, Turkey and Brazil.

In this regard the finance minister shall hold meetings with the top leadership of IMF during the annual meetings of World Bank/IMF at Bali later this week, the statement concluded.

The report warned that growth "may have peaked in some major economies".

President Donald Trump has slapped tariffs on US$250 billion in Chinese goods this year, and Beijing has retaliated with levies US$110 billion of American products.

As stakeholders look for a categorical position of Khan's administration in going or not going to the IMF for financial assistance or the arrangement of funds from alternative resources, the country's stock market remains in a tight spot due to uncertainty.

It also said inflation in India is on the rise, estimated at 3.6 per cent in fiscal year 2017/18 and projected at 4.7 per cent in fiscal year 2018/19, compared with 4.5 per cent in fiscal year 2016/17, amid accelerating demand and rising fuel prices.

"We'll be listening very attentively when and if they come to us", Obstfeld said.

"Growth is now much more uneven" than six months ago, he told reporters. The 0.2 percentage point downgrade to the 2019 growth forecast is attributable to the negative effect of recent tariff actions, assumed to be partially offset by policy stimulus, it said.

It's so concerned about the potential for a bad deal it has downgraded global economic growth to 3.7% for both 2018 and 2019, in its latest World Economic Outlook.

However, the International Monetary Fund cautions that it has a "poor track record of predicting recessions".

If the trade war continues, it could take a significant bite out of global growth, according to the fund.

The IMF now expects South Africa's economy to expand 0.8 percent, down from a forecast of 1.5 percent in July.

When the USA dollar strengthened earlier this year, investors feared emerging market economies could be in trouble. Less than 1 percent of the nation's more than 200 million people file tax returns and its exports, including textiles, lag the region.

USA dollar soars to Rs134 in interbank market