State-run miner National Mineral Development Corporation (NMDC) has slashed iron ore prices by over 50 percent due to the week iron ore demand. Analysts see the prices softening further in the near-term
Attributing the decline in inflation to fall in global commodity prices, former Finance Minister P Chidambaram on Wednesday said the government should persuade RBI to cut interest rates if it believed the price situation would continue to improve.
The fall in global commodity prices, if sustained, is likely to lead to a "positive terms of trade shock", improving the current account deficit to 4.3 percent in 2013, from the earlier projection of 5.3 percent, according to a Nomura report.
With the rupee fast losing value against the US dollar, Finance Minister Pranab Mukherjee on Friday blamed volatility in global commodity prices for currency depreciation and said deteriorating balance of payment (BoP) situation in several Asian countries also put stress on currencies.