Mumbai, December 23
The Indian rupee ended weaker on Friday, posting its third straight week of losses, as concerns over slowing growth pushed domestic equities lower and as importers stepped up dollar buys for monthend payments.

Volumes in the dollar-rupee market were thin, with traders preferring to stay on the sidelines ahead of the yearend.

Actions taken by the Reserve Bank of India over the last few days to curb speculation in the currency that hit a record low of 54.30 to the dollar on Dec 15 kept trading appetite subdued, dealers said.

The rupee ended at 52.9600/9675 to the dollar, weaker compared with Thursday's close of 52.7200/7300. It had touched a high of 52.6350 in opening trades. The unit has lost 0.5 percent this week.

"The RBI moves and the yearend factor have caused volumes to drop (in dollar-rupee trade)," said a senior foreign exchange trader at a large private sector bank. "This situation is likely to continue till the new year begins. Until then rupee should move in 52 to 53 band," he said.

Although investors slightly increased their bearish bets against the Indian rupee compared to two weeks ago, a Reuters poll showed on Friday, many analysts think most potential negative factors have been taken into account.

"We believe the depreciation momentum is petering out and the rupee should find a top around current levels of 52.50-53.50," said Abheek Barua, chief economist at HDFC Bank in a research note on Friday. He added the RBI's recent steps to curb speculation have reduced volatility in the dollar-rupee market. — Reuters

New Delhi, December 23
Amid differences between representatives of employees and employers, the EPFO failed to take a decision today on the interest rate to be paid to its 4.7 crore subscribers for 2011-12 and asked the Finance Ministry to take the final call.

The Employees' Provident Fund Organization (EPFO) will forward different suggestions with respect to payment of interest on provident fund deposits for the current fiscal to the finance ministry for a final decision, Labour Minister Mallikarjun Kharge said after a meeting of the Central Board of Trustees (CBT), the EPFO’s highest policymaking body.

While the EPFO has suggested payment of interest at the rate of 8.25% for the fiscal, the trade union members insisted that it should be 9.5%. The representatives of employers wanted the interest rate to be fixed at 8.5%. The EPFO paid 9.5% interest to its members during 2010-11.

According to sources, this was the first time that the CBT has failed to take a call on the interest rate and has asked the finance ministry to decide the issue.

Making a case for payment of 9.5% interest, the trade union members, according to sources, argued that the EPFO cannot pay less than 8.6% interest, the rate offered by the government under the Public Provident Fund (PPF) scheme. The EPFO’s financial advisory committee, however, had suggested payment of 8.25% interest in 2011-12.

According to estimates worked out by the EPFO, the payment of 8.25% interest during FY12 would result in a deficit of a mere Rs 24 lakh vis-a-vis its earnings. — PTI

New Delhi, December 23
The plan to give foreign supermarkets access to India's retail industry is "very much on the government's mind", Finance Minister Pranab Mukherjee said Friday, weeks after New Delhi was forced to backtrack on the reform.

"Yes, we announced FDI policy in retail but it could not be implemented. But that does not mean we have shelved it", Mukherjee said at an industry event on Friday.

He said the government was now working for a political consensus on foreign direct investment plans in supermarkets and a delayed pensions bill.

The Pension Fund Regulatory & Development Authority (PFRDA) Bill, which was expected to be passed in the current session of Parliament, has also been put off due to opposition from the Trinamool Congress, a key ally of the Congress party.

"Commitment to FDI, commitment to PFRDA and all other major legislation which are part of new generation are very much in the mind of the government and we are working very hard to build up the consensus," Mukherjee said.

On the fiscal front, Mukherjee admitted to challenges but said the Indian economy is suffering a temporary setback. "Yes the situation is difficult", he said. "I do believe we’ve the capacity, we have the resilience to overcome this difficulty," he added.

Struggling with a rapidly weakening rupee and a widening current account deficit, Asia's third largest economy is looking for ways to attract foreign capital.

The finance minister reiterated the government's view that growth in the current fiscal year could be between 7.25% and 7.75%, lower than the 9% budgeted earlier in the year. — Reuters

New Delhi, December 23
The petroleum & natural gas ministry has sought an extension of over one month in the deadline to respond to the arbitration notice issued by Reliance Industries Ltd against proposed penal action for a fall in KG-D6 gas output.

The ministry wrote to RIL on Wednesday seeking time till January 31 to respond to the arbitration notice, sources privy to the development said.

RIL had in the November 24 arbitration notice termed the ministry's move to limit the amount of expenditure the company can recoup from its flagging KG-D6 fields in proportion to the gas production as illegal and outside the production sharing contract (PSC).

As per the dispute resolution mechanism set out in the PSC, the government had one month's time to respond to the notice and appoint arbitrators. RIL and the government have the right to appoint one arbitrator each. A third neutral adjudicator was to be appointed by the two arbitrators.

RIL would have got the right to appoint an arbitrator on behalf of the government if no response was made within the one month timeframe.

Sources said the oil ministry wants to consult the law ministry on the arbitration notice and appointment of arbitrators and accordingly sought an extension of the deadline.

The ministry was moving toward restricting cost-recovery — now at 100% —in proportion to gas output from the KG-D6 fields. RIL has built facilities to handle 80 million cubic metres per day of gas production, but the fields are producing less than half of that due to a fall in reservoir pressure and water ingress. — PTI

Washington, DC, Dec 23
The US economy is gaining momentum and should push through next year with only a few bruises despite an almost certain European recession and slower global growth.

A firming in the anemic US labour market should put the economy in reasonable shape to withstand headwinds from overseas, although the recovery will likely slow at the start of the year after a surprisingly solid fourth quarter.

"The US economy will be one of the better stories in an otherwise gloomy global economy next year," said Sung Won Sohn, an economics professor at California State University in the Channel Islands. "It will not go into recession."

Data from employment to manufacturing imply US growth will top a 3% annual rate in the fourth quarter, which would be the fastest pace in 18 months.

Much of that expansion reflects the release of pent-up demand for autos and a restocking of inventories by businesses, temporary factors that could lead to a lull early in 2012. But a healing labour market provides a signal of a more-lasting and fundamental strengthening of the recovery.

The jobless rate fell to a 2-1/2-year low of 8.6% in November and first-time claims for jobless benefits have dropped to the lowest level since early 2008.

That's good news for the consumers who drive two-thirds of US economic activity.

"The consumer is going to be able to spend simply because job growth is picking up," said Joel Naroff, chief economist at Naroff Economic Advisors in Holland, Pennsylvania. "As job growth picks up, income picks up."

Many economists now look for growth of between 2.3% and 3% in 2012, even given the clouds overseas.

While far from stellar, that would mark an acceleration from an expected 2% expansion this year and it could offer some mild relief to President Barack Obama, whose handling of the economy is key to his re-election hopes.

The debt crisis in Europe and bickering over budget policy in Washington are the biggest threats. "The key question is whether the economy will be allowed to run on its own internal dynamics," said Anthony Karydakis, chief economist at Commerzbank in New York. — Reuters

Washington, DC, Dec 23
Immigrants, with the largest number coming from India, have started nearly half of America's top 50 venture funded companies in the US creating about 150 jobs each, according to a new report.

They are also key members of management or product development teams in almost 75% of the country's leading cutting-edge firms, according to a report released by the National Foundation for American Policy (NFAP).

India was followed by Israel, Canada, Iran and New Zealand as the top countries of origin for an immigrant founder. Other founders and co-founders were born in Italy, South Africa, Greece, Norway, Germany, Britain, Singapore, Switzerland and France.

"Immigrants are increasingly important in driving growth and innovation in America, as evidenced by the role played by foreign-born founders and key personnel in the nation's breakthrough companies," said Stuart Anderson, NFAP executive director and the report's author.

The report, Immigrant Founders and Key Personnel in America's 50 Top Venture-Funded Companies, found that 46%, or 23 out of 50, of the country's top venture-funded companies had at least one immigrant founder.

A 2006 study conducted with the National Venture Capital Association identified an immigrant founder in 1 in 4, or 25%, of publicly traded venture-backed companies created between 1990 and 2005.

The study found 37 of the top 50 companies, or 74%, had at least one immigrant helping the company grow and innovate by filling a key management or product development position. — IANS