A late recovery helped the rupee gain on Friday, as demand for global risk assets recovered after the euro extended gains on the back of falling yields for Italian and Spanish debt.
The ongoing political crisis in Italy continues. The Italian Prime Minister Silvio Berlusconi bowed to pressure. Larry Kantor of Barclays Capital feels this is a small positive step as Berlusconi has been in power for a long time and has not been able to deliver on reforms necessary so far.
US markets fell by a whopping 6% during trade yesterday on the back of S&P’s downgrade decision. According to Robert Parker, Credit Suisse, the current global market sell off is because of investor fear.
As Greece struggles with their bludgeoning debt will Italy be next especially after last week's outlook downgrade? Federico Ghizzoni, Chief Executive of UniCredit tells CNBC's Geoff Cutmore that Italy is a in a totally different situation than Greece.