A trade deficit of $13.94 billion was reported as against $7.19 billion in the same month last year. The soaring prices of Oil in international market and weakening of Rupee against the Dollar has been accounted for as the reasons for the upsurge.  

An increasing trend was noticed both in exports as well as imports as compared to the last year,with export soaring to 26.9 percent in August, while the import bill rose to 51.2 percent. The former grew to $16 billion in August from $12.61 billion while latter to $29.94 billion from $19.8 billion.

Speaking to the media on his way back to the Country, the PM was calm and composed. After successfully pulling off the Nuclear deal with France and positive response from the President of Pakistan on all issues, Mr. Singh said, “We have given this country a purposeful government, a government which by-and-large has the support of all constituents of our coalition”. 

The PM spoke on various issues ranging from the nuclear deal to land acquisition case in Singur to the terrorist blasts and attacks on Christians. 

New Delhi - India's benchmark Sensex stock index recovered from early losses Tuesday after market regulator the Securities and Exchange Board of India assured that the US financial crisis will not affect domestic bourses.

The 30-share-sensitive index plunged by 442.20 points soon after opening to a near two-year low of 12,153.33 - a loss of 3.5 per cent -amid heavy selling in stocks of banking, metal, realty and IT sectors.

The Sensex later pared its losses and was trading at 12,612.28, up 0.13 per cent, at 12:15 pm (0645 GMT).

The broader S&P CNX Nifty index of the National Stock Exchange also recovered and was trading at 3,846.10, down 0.10 per cent, around the same time.

The Domestic Currency reported a major decline to a five year low as it came up to 47.10 against the Dollar. The Rupee slumped to psychologically important 47-mark and was last seen crossing 47 mark in July 2006. With Dollar gaining strength in Global scenario the Indian Currency lost its importance. The impact was evident in the equity market.

The loss was attributed to the importers and oil companies who purchased dollars to meet the month-end demand. Rupee opened weaker this time at 46.82/83 and closed at 46.97/99, against the previous close of 46.54/55.  

For the week ended on Sep 19, the foreign exchange reserves surged by $2,511 million to touch $291,972 million on account of increase in foreign currency and assets collections on a weekly basis.

According to the data released by the Reserve Bank of India’s Weekly Statistical Supplement, foreign currency assets increased by $2,509 million to $282,811 million for the week under review.

The reserve position in the International Monetary Fund (IMF), during the week under review, climbed by $2 million to $465 million, whereas gold reserves were unchanged at $8,692 million.