Indian Rupee's stability and low cost makes it attractive for carry trade, Bank of America says
6 months, 2 weeks ago

Indian Rupee's stability and low cost makes it attractive for carry trade, Bank of America says

Hindustan Times  

The Indian rupee is stable and inexpensive compared to its emerging market peers, making it a favorite for carry traders, according to Bank of America Corp, Bloomberg reported. Foreign exchange A carry trade is when a foreign exchange trader borrows money in a currency from a country with low-interest rates and converts the borrowed amount into another currency from a higher interest rate country, making a profit in the process. The rupee has become one of the least volatile currencies in emerging markets, aided by a long interest-rate pause by the Reserve Bank of India and record foreign exchange reserves, according to the report. The rupee’s relative stability bears testimony to the country’s sound and resilient economic fundamentals, financial stability, and improvement in the external outlook, RBI Governor Shaktikanta Das said at a press briefing Friday after the RBI left borrowing costs unchanged for an eighth straight meeting.

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History of this topic

Rupee slips to all-time low pressured by weak yuan, importer dollar bids
1 day, 21 hours ago

Rupee slips to all-time low pressured by weak yuan, importer dollar bids

Live Mint  

By Jaspreet Kalra MUMBAI - The Indian rupee weakened to its lifetime low on Monday, pressured by weakness in the offshore Chinese yuan and strong dollar bids from importers, likely related to month-end payments, while state-run banks' dollar sales capped the decline. The rupee declined to 85.12 against the U.S. dollar, hitting an all-time for the fifth consecutive trading session …

Rupee weakens to lifetime low hurt by merchant dollar bids, weak equities
6 days, 21 hours ago

Rupee weakens to lifetime low hurt by merchant dollar bids, weak equities

Live Mint  

By Jaspreet Kalra MUMBAI, Dec 18 - The Indian rupee hit its all-time low on Wednesday, pressured by strong dollar demand from importers and likely outflows from local equities, while intervention by the Reserve Bank of India curbed losses, traders said. Weakness in regional currencies ahead of the Federal Reserve's policy decision due in U.S. trading hours also hurt the …

Record trade deficit adds to rupee’s challenges, may open to all-time low
1 week, 1 day ago

Record trade deficit adds to rupee’s challenges, may open to all-time low

Live Mint  

By Nimesh Vora MUMBAI, Dec 17 - The Indian rupee may slip to an all-time low on Tuesday with the currency, already under pressure from slowing growth, choppy equity flows and a dollar rally, will have to contend with an unexpected widening in trade deficit to a record high. The jump in gold imports and weak exports pushed India's merchandise …

Indian rupee to face renewed pressure as US yields climb
1 week, 2 days ago

Indian rupee to face renewed pressure as US yields climb

Live Mint  

By Nimesh Vora MUMBAI, Dec 16 - The Indian rupee, having witnessed slight relief late last week, is likely to come under renewed strain on Monday on the back of a further rise in U.S. Treasury yields. "With inflation remaining sticky, and President-elect Trump looking to strengthen the U.S. growth performance, the Fed is set to signal a more cautious …

Rupee hits record low, RBI intervention counters bearish tilt
1 week, 5 days ago

Rupee hits record low, RBI intervention counters bearish tilt

Live Mint  

By Jaspreet Kalra MUMBAI, Dec 12 - The Indian rupee fell to an all-time low on Thursday, pressured by a lingering depreciation bias and heightened demand for the U.S. dollar in the non-deliverable forwards market, while the central bank's intervention helped prevent sharp losses. The dollar index was little changed at 106.5, unfazed by the elevated odds of a December …

Rupee's slide: What it means for economy, markets, and you
3 weeks ago

Rupee's slide: What it means for economy, markets, and you

India Today  

The rupee’s recent tumble to a record low of 84.73 against the US dollar has raised concerns about its impact on the economy and people’s daily lives. Although the rupee has recovered slightly today due to gains in the Chinese yuan, the recent drop reflects a confluence of global and domestic factors, creating ripple effects that extend beyond currency markets. …

India’s foreign exchange reserves decline for eighth consecutive week
Trending News
3 weeks, 3 days ago

India’s foreign exchange reserves decline for eighth consecutive week

Live Mint  

New Delhi, December 1 : India's foreign exchange reserves slumped for an eighth consecutive week to hit a multi-month low of USD 656.582 billion in the week that ended on November 22, data from the Reserve Bank of India showed. The latest RBI data showed that India's foreign currency assets, the largest component of forex reserves, stood at USD 566.791 …

Rupee poised for some relief on softer dollar, portfolio flows
1 month ago

Rupee poised for some relief on softer dollar, portfolio flows

Live Mint  

By Jaspreet Kalra MUMBAI, Nov 25 - The Indian rupee may log mild gains on Monday helped by a pullback in the U.S. dollar and portfolio inflows on account of the rebalancing of MSCI's global equity indexes. The dollar index rose to its highest level in two years on Friday but dipped 0.5% at Monday's market open to 106.9 after …

India rupee to lean on central bank help; bonds to track US peers
1 month, 1 week ago

India rupee to lean on central bank help; bonds to track US peers

Live Mint  

By Dharamraj Dhutia and Jaspreet Kalra MUMBAI, Nov 18 - The Indian rupee will rely on the central bank's help to counter headwinds this week, as the possibility of slower Federal Reserve interest rate cuts and expectations surrounding Donald Trump's policies boost the dollar and U.S. bond yields. A sharp rise in the dollar and elevated U.S. bond yields since …

Only a weaker dollar will bring foreign investors back to India: Ruchir Sharma
1 month, 2 weeks ago

Only a weaker dollar will bring foreign investors back to India: Ruchir Sharma

India Today  

Renowned investor and author Ruchir Sharma believes foreign investment will only return to India once the US dollar weakens. "The one variable that every investor in India should look at as to when foreign flows will start coming back into India is when the dollar turns," he said. Sharma also pointed out that unless there is a significant change in …

India’s forex reserves drop for fifth week amid RBI’s possible intervention to support rupee
1 month, 2 weeks ago

India’s forex reserves drop for fifth week amid RBI’s possible intervention to support rupee

India TV News  

India’s foreign exchange reserves fell for the fifth consecutive week, falling $2.675 billion to $682.130 billion in the week ended November 1, according to RBI data. The record reserves of $704.885 billion are slowly dwindling, likely due to RBI intervention to support the rupee. Reserve levels falling after all-time highs Recent reserve declines that peaked last month included $3.7 billion, …

Rupee flat as oil firms' dollar bids offset impact of rise in Asia FX
3 months, 1 week ago

Rupee flat as oil firms' dollar bids offset impact of rise in Asia FX

Hindustan Times  

MUMBAI - The Indian rupee was little changed on Monday, wedged between oil companies' dollar demand and a rise in its Asian peers on the back of heightened odds of a 50 basis point U.S. rate cut later this week. Rupee flat as oil firms' dollar bids offset impact of rise in Asia FX The rupee was at 83.8925 against …

Rupee trades in narrow range against U.S. dollar in early trade
3 months, 2 weeks ago

Rupee trades in narrow range against U.S. dollar in early trade

The Hindu  

The rupee traded in a narrow range on Tuesday and depreciated 3 paise to 83.98 against the American currency, amid a muted trend in domestic equities. Forex traders said foreign institutional inflows, alongside significant corrections in asset classes like the Dollar Index and crude oil prices, supported the rupee, while the Reserve Bank's active intervention kept the rupee in a …

Rupee trades in narrow range against U.S. dollar in early trade
3 months, 2 weeks ago

Rupee trades in narrow range against U.S. dollar in early trade

The Hindu  

The rupee traded in a narrow range on Monday and appreciated 1 paisa to 83.94 against the American currency, amid a muted trend in domestic equities. Forex traders said easing crude oil prices and overall weakness in the dollar index supported the rupee, but the Reserve Bank's active intervention kept the rupee in a tight range. "The RBI has been …

Rupee trades in narrow range against US dollar in early trade
4 months, 1 week ago

Rupee trades in narrow range against US dollar in early trade

Hindustan Times  

The rupee witnessed range-bound trading in initial deals against the US dollar on Monday, as market participants remained on the sidelines ahead of the release of key domestic macroeconomic data. "The Indian rupee is expected to be calm as the Reserve Bank continues to buy dollars at lower levels and sell a smaller quantity to keep rupee in a small …

Rupee sees range-bound trade against U.S. dollar in morning deals
6 months ago

Rupee sees range-bound trade against U.S. dollar in morning deals

The Hindu  

The rupee witnessed range-bound trading against the U.S. dollar in early trade on Monday, amid a negative trend in the domestic equity market. "Price action on Friday seemed to indicate purposeful intervention by the central bank," IFA Global said in a research note, adding that the rupee is likely to trade in 83.40-83.67 range with sideways price action. "Indian rupee …

Forex Update: India's Foreign Exchange Reserves Hit All-Time High of $651.51 Billion
6 months, 2 weeks ago

Forex Update: India's Foreign Exchange Reserves Hit All-Time High of $651.51 Billion

News 18  

India’s forex reserves jumped $4.837 billion to a new all-time high of $651.51 billion for the week ended May 31, according to the latest RBI data. “Touching a new milestone, India’s foreign exchange reserves reached a historical high of $651.5 billion as on May 31,” RBI Governor Shaktikanta Das said in his statement while announcing the bimonthly policy review. Sanjeev …

Rupee opens on flat note against U.S. dollar in early trade
7 months, 1 week ago

Rupee opens on flat note against U.S. dollar in early trade

The Hindu  

The rupee opened on a flat note against the U.S. dollar in early trade on Thursday, as the support from positive domestic equities was negated by sustained foreign fund outflows and elevated crude oil prices. Forex traders said the rupee remains under pressure due to ongoing elections as well as foreign fund outflows and the same shall subside once the …

Rupee trades in narrow range against U.S. dollar in early trade
8 months ago

Rupee trades in narrow range against U.S. dollar in early trade

The Hindu  

The Rupee was trading in a narrow range against the U.S. dollar in early trade on April 24, as the support from positive domestic equities was negated by strong American currency. Forex traders said elevated crude oil prices and significant foreign fund outflows in the international market dented investors' sentiments. Forex traders said the Rupee to trade with a slight …

Rupee turns flat at 83.33 against U.S. dollar in early trade
8 months, 3 weeks ago

Rupee turns flat at 83.33 against U.S. dollar in early trade

The Hindu  

The rupee turned flat at 83.33 against the U.S. dollar in early trade on Thursday amid a strong American currency and higher crude oil prices. At the interbank foreign exchange, the rupee opened at 83.32 and lost further to trade at the previous closing level of 83.33 against the greenback in initial deals. Meanwhile, the dollar index, which gauges the …

Rupee falls 4 paise to 83.02 against US dollar in early trade
10 months, 2 weeks ago

Rupee falls 4 paise to 83.02 against US dollar in early trade

New Indian Express  

MUMBAI: The rupee depreciated 4 paise to 83.02 against the US dollar in early trade on Monday, tracking a strong American currency and rising crude oil prices in the international market. At the interbank foreign exchange, the rupee opened at 83.03 against the dollar and touched a low of 83.04 before gaining marginally to trade at 83.02, down 4 paise …

Rupee trades in narrow range against U.S. dollar
10 months, 3 weeks ago

Rupee trades in narrow range against U.S. dollar

The Hindu  

The rupee was trading in a narrow range against the US dollar in early trade on Wednesday, as market participants remained cautious ahead of the interim budget that will be released on February 1. Forex traders said the rupee was trading in a narrow range as the strength of the American currency in the overseas market and foreign fund outflows …

Stock markets decline in early trade on foreign capital outflows, Rupee falls against dollar
1 year, 1 month ago

Stock markets decline in early trade on foreign capital outflows, Rupee falls against dollar

India TV News  

Equity benchmark indices declined in early trade on Wednesday due to weakness in banking, financial and metal stocks amid unabated foreign fund outflows. The US 10-year bond yield above 4.9 per cent will continue to be a major headwind for stock markets, particularly for those in emerging markets. Rupee falls against dollar The rupee depreciated 3 paise to 83.27 against …

Rupee rises 6 paise to 82.55 against U.S. dollar
1 year, 5 months ago

Rupee rises 6 paise to 82.55 against U.S. dollar

The Hindu  

The rupee gained 6 paise to 82.55 against the U.S. dollar in early trade on July 10 supported by sustained foreign fund inflows and a bullish momentum in domestic equities. At the interbank foreign exchange, the domestic unit opened at 82.65 against the dollar and then rose to 82.55, registering a gain of 6 paise over its previous close. Forex …

Why internationalising the rupee is fraught with challenges
1 year, 5 months ago

Why internationalising the rupee is fraught with challenges

India Today  

The Reserve Bank of India has once again brought to the fore the issue of internationalisation of the rupee, i.e. In July last year, the RBI had put in place a mechanism to settle international trade in rupees in order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of the …

De-dollarization: Bangladeshi banks to offer trade transactions in Indian rupees as reserves fall
1 year, 5 months ago

De-dollarization: Bangladeshi banks to offer trade transactions in Indian rupees as reserves fall

Firstpost  

India is Bangladesh’s second-largest source of imports after China, with Dhaka’s exports to India standing at $2 billion in the year to June 2022 while Bangladesh’s imports from India were$13.69 billion. Two Bangladeshi banks plan to launch trade transactions denominated in Indian rupees as the South Asian country seeks to increase its forex reserves and lessen its dependency on dollars. …

Internationalising the rupee without the ‘coin tossing’
1 year, 5 months ago

Internationalising the rupee without the ‘coin tossing’

The Hindu  

The government’s announcement of a long-term road map for further internationalisation of the rupee can turn out to be a positive exercise. Very little international demand The rupee is far from being internationalised — the daily average share for the rupee in the global foreign exchange market hovers around ~1.6%, while India’s share of global goods trade is ~2%. Ongoing …

Stock markets: Sensex, Nifty register slump in early trade; Rupee rises 7 paise against dollar
1 year, 6 months ago

Stock markets: Sensex, Nifty register slump in early trade; Rupee rises 7 paise against dollar

India TV News  

Stock markets: Benchmark indices Sensex and Nifty declined in early trade on Tuesday. Meanwhile, Indian stock indices traded largely on a steady note Tuesday morning as investors stared at the Reserve Bank of India's bi-monthly monetary policy review for fresh cues. RBI's consistent monetary policy tightening A consistent decline in inflation and its potential for further decline may prompt the …

Markets bounce back in early trade after two days of fall; Rupee rises 10 paise against US dollar
1 year, 6 months ago

Markets bounce back in early trade after two days of fall; Rupee rises 10 paise against US dollar

India TV News  

Stock markets: Equity benchmark indices bounced back in early trade on Friday after two days of fall, following a positive trend in global markets. Also, automakers led by Maruti Suzuki India, Hyundai, Mahindra & Mahindra reporting robust wholesales of passenger vehicles in the domestic market in May and GST collections crossing Rs 1.50 lakh crore for the third month in …

Markets decline in early trade after four days of rally; Rupee falls 3 paise against dollar
1 year, 6 months ago

Markets decline in early trade after four days of rally; Rupee falls 3 paise against dollar

India TV News  

Stock markets update: Equity benchmark indices declined in early trade on Wednesday after rallying in the past four days amid weak trends in Asian markets. "Markets may see a cautious opening with a slightly negative bias in Wednesday trade amid weak global cues," Prashanth Tapse, Senior VP, Mehta Equities Ltd said in his pre-opening market comment. Meanwhile, global oil benchmark …

Rupee trade arrangement to help cut transaction cost: Piyush Goyal
1 year, 8 months ago

Rupee trade arrangement to help cut transaction cost: Piyush Goyal

The Hindu  

International trade in the domestic currency will help reduce transaction cost for the industry and several countries are in discussion with the RBI on this, Commerce and Industry Minister Piyush Goyal said on Thursday. They want banks in India to connect with their foreign counterparts for opening special rupee vostro accounts to facilitate cross-border trade in the Indian currency rather …

Popular emerging market FX trade back with global rates peaking
1 year, 8 months ago

Popular emerging market FX trade back with global rates peaking

Live Mint  

The stars are aligning in favor of a popular currency trade that benefits from attractive yields and low volatility — even as markets come off one of the most turbulent months in years. Signs that the US economy is slowing down and global interest rates are peaking are setting the stage for investors to revive so-called carry trades in emerging …

India to trade in rupee with countries with currency failure
1 year, 8 months ago

India to trade in rupee with countries with currency failure

Deccan Chronicle  

Chennai: As the Foreign Trade Policy sought internationalisation of rupee, Commerce Secretary Sunil Barthwal said India is ready to trade in Indian rupee with countries facing currency failure or having dollar shortage. The decision to elevate the rupee’s status as an international trade settlement currency comes at the right time when several economies are rattled by currency fluctuations and dollar …

India must prepare to curb volatility risks of international rupee: RBI Deputy Governor
1 year, 9 months ago

India must prepare to curb volatility risks of international rupee: RBI Deputy Governor

The Hindu  

India needs to gear up to manage the inevitable volatility that will emerge in the foreign exchange market as the country progresses further towards internationalisation of the rupee, a Deputy Governor at the Reserve Bank of India said recently. "It is now widely accepted that while internationalisation and a freer capital account comes with its own set of benefits, it …

Indian rupee going global? After Russia, 35 countries show interest in INR trade settlement mechanism
1 year, 11 months ago

Indian rupee going global? After Russia, 35 countries show interest in INR trade settlement mechanism

Firstpost  

India’s rupee trade settlement mechanism is a method of using INR instead of dollars and other big currencies for international transactions New Delhi: Days after sanctions-hit Russia became the first overseas country to start foreign trade in Indian rupee, about 35 nations have expressed interest in better understanding the rupee trade mechanism. The India’s central bank - Reserve Bank of …

Indian rupee ends 2022 as worst-performing Asian currency
1 year, 11 months ago

Indian rupee ends 2022 as worst-performing Asian currency

Live Mint  

The Indian rupee ended 2022 as the worst-performing Asian currency with a fall of 11.3%, its biggest annual decline since 2013, as the dollar rocketed on the U.S. Federal Reserve's aggressive monetary policy stance to tame inflation. Heading into 2023, market participants believe the rupee would trade with an appreciation bias, finding relief from easing commodity prices and hopeful of …

Markets end in red; Sensex falls for 3rd day in row, IT stocks worst hit
2 years ago

Markets end in red; Sensex falls for 3rd day in row, IT stocks worst hit

Live Mint  

Indian markets corrected steeply on Tuesday tracking feeble Asian counterparts as global investors turned cautious after strong US services data sparked bets for higher terminal rates by Federal Reserve. Surprisingly, the Indian rupee reached its highest level since November 7th against the US dollar due to suspected Yuan-Rupee carry trade unwind and corporate dollar outflows. Rupak De, Senior Technical Analyst …

Cryptocurrency trading, user signups spike in India on stable Bitcoin
2 years, 2 months ago

Cryptocurrency trading, user signups spike in India on stable Bitcoin

Live Mint  

Crypto trading volume as well as user signups have witnessed a jump of up to 45% in recent weeks because of stability in bitcoin price and a weak rupee. Bitcoin prices have consolidated in an increasingly narrow range while global equity and bond markets continued to tread challenging ground with growing stress developing in sovereign debt and currency markets this …

With the rupee under pressure, what next
2 years, 2 months ago

With the rupee under pressure, what next

The Hindu  

Even without getting into any quantitative measure of vulnerability, it is quite clear that the rupee is under pressure. In the last one year, it depreciated by over 10%, has crossed the psychological marker of ₹80 to a dollar, and India’s foreign exchange reserves are down by more than $100 billion. Arguably, the pressure on the rupee has softened, if …

Rupee Has Held Up Very Well Against Dollar Compared to Other Currencies: FM Sitharaman
2 years, 3 months ago

Rupee Has Held Up Very Well Against Dollar Compared to Other Currencies: FM Sitharaman

News 18  

Finance Minister Nirmala Sitharaman on Saturday said the rupee has “held back very well” against the US dollar when compared to other currencies. Against the backdrop of the rupee dropping to a lifetime low against the greenback, Sitharaman said the Reserve Bank and the finance ministry are keeping a very close watch on the situation. The rupee slumped 30 paise …

RBI may take cue from Fed rate hike, loans may get costly, fuel costly
2 years, 3 months ago

RBI may take cue from Fed rate hike, loans may get costly, fuel costly

Deccan Chronicle  

HYDERABAD: After a hawkish US Federal Reserve increased its policy rate by three quarters, the Reserve Bank of India is likely to follow the suit to keep rupee attractive for foreign investors and fight stubborn domestic inflation. An interest rate hike in advanced economies like the United States will reduce the interest rate differential in India, which could make non-resident …

Indian rupee showed more resilience than other currencies in recent years: Goyal
2 years, 3 months ago

Indian rupee showed more resilience than other currencies in recent years: Goyal

The Hindu  

Indian rupee has shown more resilience than most of the other currencies in recent years and the compounded average growth rate of depreciation is lower as compared to pre-2014, Minister of Commerce and Industry Piyush Goyal has said. I am happy that the Indian rupee has shown more resilience than most of the currencies in recent years," Mr. Goyal said …

Policy cues from a depreciating rupee
2 years, 3 months ago

Policy cues from a depreciating rupee

Live Mint  

In the absence of capital flows, the exchange rate is largely determined by the current account of balance of payments. Capital inflows add to the supply of foreign exchange and a strong inflow can lead to the domestic currency getting stronger despite a current account deficit. The purchasing power parity theory, which states that the external value of the currency …

Using a rupee route to get around a dominating dollar
2 years, 4 months ago

Using a rupee route to get around a dominating dollar

The Hindu  

A number of countries, including India, are now considering the use of other currencies to avoid the U.S. dollar and its hegemonic role in settling international transactions. The present scenario In recent times, India has been taking an active interest in having the rupee used for trade and the settlement of payments with other countries, which include Russia, now facing …

Data | Why the rupee is under pressure — explained in seven charts
2 years, 4 months ago

Data | Why the rupee is under pressure — explained in seven charts

The Hindu  

Till recently, the rupee was recording fresh lows every other day. Deteriorating CAD A widening trade deficit causes the current account deficit to deteriorate which in turn adds pressure on the local currency. With slowing global economic growth and looming recession fears, a depreciating currency may not help spur exports which otherwise would have helped at least partly bridge the …

RBI ’correct’ to use forex reserves to tackle rupee volatility: Economic Adviser
2 years, 4 months ago

RBI ’correct’ to use forex reserves to tackle rupee volatility: Economic Adviser

Live Mint  

The Reserve Bank of India is justified in using the country's foreign exchange reserves to smooth out volatility in the rupee's moves against the dollar, a member of the Economic Advisory Council said on Monday. "Longer term, we need to maintain overall macro-stability and allow the cycle to play itself out," said Sanyal, who was previously India's chief economic adviser. …

Despite pressures, the Indian rupee’s remarkable resilience
2 years, 5 months ago

Despite pressures, the Indian rupee’s remarkable resilience

The Hindu  

The Indian rupee has depreciated by around 7% against the U.S. dollar, since the start of the year, in response to various domestic and global factors. Specifically, a widening current account deficit, persistent risk-off sentiment as a result of geopolitical tensions, ‘a strengthening dollar index, and continuous sell-off by foreign portfolio investors have all put pressure on the rupee’. Elevated …

'No need to be 'overtly' worried about fall in rupee,' says Economic Affairs Secretary Ajay Seth
2 years, 5 months ago

'No need to be 'overtly' worried about fall in rupee,' says Economic Affairs Secretary Ajay Seth

Firstpost  

The rupee for the first time touched a low level of 80 against the US dollar in intra-day spot trading at the interbank foreign exchange market on Monday New Delhi: Economic Affairs Secretary Ajay Seth on Tuesday said that the rupee is managed well and there is nothing to be “overtly” worried about the depreciation in the domestic currency against …

Rupee hits all-time low of 80 against US dollar in early trade
2 years, 5 months ago

Rupee hits all-time low of 80 against US dollar in early trade

India Today  

The Indian Rupee on Tuesday, July 19, sunk to a record low of 80 per US Dollar in early trade for the second day in a row, reported news agency ANI. The Union government on Monday admitted in Parliament that the value of the Indian rupee against the dollar has fallen by Rs 16.08 in the last eight years. Capital …

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