Given the quagmire the Indian economy is in, US military action against Syria will make things a lot worse. It is bound to lead to a spike in international oil prices.

The Reserve Bank of India has pitched for \"stringent\" entry norms for new players while suggesting four-tier structure for the domestic banking industry.

The RBI is expected to vet all proposals, including the $2.5-billion Apollo Tyres deal with Cooper Tire & Rubber Company of the US, to see whether they are in tune with the new norms that have kicked in to curtail the outflow of foreign exchange and strengthen the rupee.

Barclays has said the rupee is unlikely to get any \"meaningful benefit\" from RBI's most recent measures as the key to support the currency is boosting forex inflows.

A former IMF Chief Economist Rajan joins the RBI at a time when the government is battling industrial slowdown, declining rupee, rising prices and all-time high Current Account Deficit (CAD).

Hailing the announcement of Raghuram G Rajan as the new RBI Governor, India Inc on Tuesday said the appointment of the former IMF Chief Economist will help bring the economy back on growth path.

It is because he comes across as one who is confused about the realities monetary policy has to confront. Someone has to tell the finance ministry that the world has changed since the early 1990s.

Finance Minister P.Chidambaram outlined the steps the government would take to raise long-term foreign money, including allowing some public sector companies to raise money abroad.

Though the RBI governor indicated that he is not in favour of floating sovereign bonds to prop up the rupee, he has not ruled out the possibility.

Bank of America-Merrill Lynch has said the rupee is not likely to settle down until the Reserve Bank of India (RBI) is able to recoup the forex reserves.

The government's announcement on steps to boost exports and attract more foreign capital on Wednesday lifted the rupee from near record lows and close with a gain of 7 paise at 60.40 against the US dollar.

The bank also lowered the GDP growth projection for the current fiscal to 5.5 per cent from 5.7 per cent, adding that the external sector is the \"biggest threat\" to economic stability.

Faced with an unstable rupee, elevated retail inflation and uncertain global economic conditions, the Reserve Bank on Monday said it will follow a cautious monetary stance, with focus on stabilising the domestic currency and containing the current account deficit.

The brokerage in a note said the Reserve Bank's defences to save the rupee are very limited. The country had over $280 billion in forex reserves as of July 12, covering only seven months of our imports.

Despite the June inflation staying below its comfort zone, the Reserve Bank of India may not reduce its policy rate in the next monetary policy announcement scheduled for July 30 as the fallout of the rupee's battering in the foreign exchange market has not yet shown up in inflation data.

The rupee depreciation is likely to hurt the inflation fight and restrict the Reserve Bank from cutting its policy rates at the forthcoming monetary policy review by month end, says ratings agency Crisil.

The Business Today-C fore Business Confidence Survey for the April-to-June period of 2013 found that sentiment among corporate leaders turned for the worse for the first time in four quarters, due mainly to a steep drop in the value of the rupee.

American Interest: The strategic dialogue co-chaired by U.S. Secretary of State John Kerry and External Affairs Minister Salman Khurshid reviewed the status of civil nuclear ties and defence trade between the U.S. and India. Kerry wanted India to adopt clean energy technologies. Next, U.S. Vice President Joe Biden is scheduled to visit India in mid-July.

In tune with surge in stocks, the rupee on Friday rose by a staggering 80 paise, its biggest single- day gain in last nine months, to close above the 60-mark at 59.39 amid signs of strong fund inflows on hopes that US Fed will not begin tapering monetary stimulus soon.

Magma Fincorp saw its shares surge over 6 per cent on the bourses after the company said it will apply for seeking a bank licence.