Rupee’s yoyo calls for new playbook
2 years, 8 months ago

Rupee’s yoyo calls for new playbook

New Indian Express  

On July 1 the government announced a windfall tax on oil producers and hiked levies on the import of gold. This week the RBI in an attempt to shore up confidence in the currency announced raising the investment cap for FPIs in debt markets and hiked the permissible limits on external borrowings for Indian corporates besides new norms to enable banks to raise deposits from NRIs. However, the million-dollar question is would FPIs find it attractive to invest in Indian debt as the currency slides and as interest rates are hiked across the world. Would corporations raise external debt when the currency is expected to depreciate? Even as the market deliberates and debates the moot point is: Did the RBI have to wait till July to initiate the steps to shore up the rupee when the implication of global rate hikes was a known known.

 known  playbook  rupees  raise  calls  shore  yoyo  currency  rbi  indian  hiked  debt  steps  wait

History of this topic

Currency pressure: The Hindu Editorial on the rupee’s depreciation against the dollar
2 years, 6 months ago

Currency pressure: The Hindu Editorial on the rupee’s depreciation against the dollar

The Hindu  

The rupee is yet again facing renewed pressure, along with major peers, as the dollar continues to strengthen in the wake of the Federal Reserve’s latest jumbo 75 basis points interest rate increase and the U.S. central bank’s unequivocal message that it remains squarely focused on taming inflation. The Indian currency weakened past the 81-mark against the dollar for the …

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