Exchange Rates

The argument that a country can be an active participant in global trade but avoid financial globalisation is fundamentally faulty

The rupee pared initial losses and settled on a flat note at 82.54 (provisional) against the US dollar on Thursday, supported by a rebound in domestic equities. At the interbank foreign exchange market, the local unit opened at 82.59 against the American currency and touched a low of 82.66 and a high of 82.48 intra-day. It finally settled at 82.54 against the greenback, unchanged from its previous close. In the previous session on Wednesday, the rupee had appreciated 16 paise after the Reserve Bank of India (RBI) hiked the repo rate by 25 basis points. The dollar index, which gauges the greenback's strength against a basket of six currencies, declined 0.36 per cent to 103.03. Global oil benchmark Brent crude futures advanced 0.19 per cent to USD 85.25 per barrel. "The Indian rupee depreciated against the US dollar amid fund outflows and risk-averse sentiments. However, the loss was limited following the state-run banks' dollar supply following inflows from the issuance of green .

RBI said to have been actively buying dollars for the past couple of weeks, say currency traders

Currency's depreciation not a reflection of the economy, says HDFC Ltd chairman

He expects inflation to fall within tolerance band by January-March

Going forward, our monetary policy will be watchful, nimble footed and calibrated, says RBI Governor

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India has extended the duration of the $400 million currency swap facility extended to Sri Lanka, which is in dire straits. But what exactly is currency swap? This report offers an insight

The rupee on Tuesday weakened past 80 per dollar for the first time but went on to recover lost ground

India's private defence firms had last campaigned for ERV protection after being bruised by the rupee's fall from Rs 44 a dollar in October 2010 to below Rs 56 just a few months later

However, the rupee can truly become internationalised only when it becomes freely convertible on capital account, they say

Exchange rate of two trading partners may be market determined, says central bank

The rupee closed down 0.3% to 78.97 a dollar on Wednesday, extending this year's losses to 5.9%. RBI's stated stance is that it intervenes to curb currency volatility

Union Commerce Minister Piyush Goyal on Thursday asked bankers to be "more liberal" on aspects like exchange rates while serving the exporters segment.

Meanwhile, market sentiments are hurt on concern that rising Covid-19 cases in India and lockdown restriction in some states may hurt economic recovery.

This comes amid a positive trend in domestic equities.

This came on the back of weakness in the greenback and positive domestic equities.

The rupee plunged by 52 paise to close at 74.87 (provisional) against the US dollar on Monday amid a lacklustre trend in the domestic equities as investors fretted over the prospects of lockdown

Improving risk appetite also helped

Easing crude oil prices helped too