Page 2 - Forex Market

Fixed denominations vs token system: Why digital cash needs to feel real

If the payment market is cornered by a few powerful private-sector platforms, they may impose hidden charges and fees

ESMA deadlock: European regulator's interference unfortunate, says RBI DG

"Potential disruption to the forex markets can be serious"

Retail e-rupee pilot begins tomorrow: Here's what you can expect from it

The transactions using the retail CBDC can be both person-to-person as well as person-to-merchant, and payments can be made using QR codes shown at merchant locations

Rupee advances 16 paise to 81.54 against US dollar in early trade

The rupee appreciated 16 paise to 81.54 against the US dollar in early trade on Friday on broad dollar weakness and in line with its Asian peers. At the interbank foreign exchange, the domestic unit opened at 81.69 against the dollar, then gained ground to touch 81.54, registering a rise of 16 paise over its previous close. On Thursday, the rupee appreciated by 23 paise to close at 81.70 against the US dollar. Forex traders said the American currency has retreated from its elevated levels post Federal Open Market Committee (FOMC) minutes. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.23 per cent to 105.82. Moreover, steady crude oil price is also aiding investor sentiments. "Brent is steady around USD 85 per barrel after Thursday's drop which came on reports that the price caps proposed for Russian crude were too high and above the current levels," IFA Global Research Academy said in a note. Brent crude futures, the global oi

Rupee sheds 0.2% to dollar as Covid worries trigger slump in yuan

Talk of persistent rate hikes by US Fed officials also drags rupee lower

Rupee depreciates 12 paise to 81.86 against US dollar in early trade

The rupee depreciated 12 paise to 81.86 against the US dollar in early trade on Monday, tracking the strength of the American currency in the overseas market and a muted trend in domestic equities. At the interbank foreign exchange, the domestic unit opened at 81.84 against the dollar, then lost ground to quote at 81.86, registering a loss of 12 paise over its previous close. On Friday, the rupee depreciated by 10 paise to close at 81.74 against the US currency. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.25 per cent to 107.19. The rupee started this Monday morning on a weaker note as the dollar continued to strengthen amid hawkish Fed rhetoric, Sriram Iyer, Senior Research Analyst at Reliance Securities, said, adding that the key trigger for the markets will be the US central bank's latest meeting. Weaker crude oil prices could cap losses, but Asian and emerging market peers were weak this Monday morning and wi

RBI sold net $10.36 bn in spot foreign exchange market in Sept: Bulletin

The RBI said it bought $23.27 billion and sold $33.62 billion in the spot market

Rupee depreciates 66 paise to 81.57 against US dollar in early trade

The rupee depreciated 66 paise to 81.57 against the US dollar in early trade on Wednesday, tracking the strength of the American currency in the overseas market and a muted trend in domestic equities. At the interbank foreign exchange, the domestic unit opened at 81.41 against the dollar, then lost ground to quote at 81.57, registering a loss of 66 paise over its previous close. On Tuesday, the rupee appreciated 37 paise to close at 80.91 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, advanced 0.17 per cent to 106.58. Brent crude futures, the global oil benchmark, fell 0.36 per cent to USD 93.52 per barrel. In the domestic equity market, the 30-share BSE Sensex was trading 72.09 points or 0.12 per cent down at 61,800.90, and the broader NSE Nifty was trading lower by 24.60 points or 0.13 per cent to 18,378.80. Foreign Institutional Investors (FIIs) were net sellers in capital markets as they offloaded

India's forex reserves down again; fall $1.1 billion to $529.99 billion

The latest decline in the reserves was primarily on account of a fall in the RBI's gold reserves, which fell by $705 million to 37.06 billion

Foreign exchange reserves fall to $525 billion, lowest since July 2020

So far in 2022, the Indian currency has weakened 9.9 per cent against the US dollar

The overvalued rupee: Managing exchange rate volatility and forex reserves

Since the 1950s, a cocktail of partisan domestic interests has resulted in the Reserve Bank of India and the Indian government favouring an overvalued rupee

RBI intervenes to claw rupee back from fresh intraday low vs dollar

Central bank may have sold around $1 billion in Fx market on Thursday

Rupee declines 0.8%, closes at fresh all-time low of 83 vs US dollar

Analysts say RBI is allowing the depreciation amid wider CAD and higher US interest rates

As RBI spreads out Fx interventions, forward premium hits 11-year lows

The central bank looks to protect headline reserves, deter offshore/onshore arbitrage on Rs with buy-sell swaps in forex market

Flows into NRIs deposits moderate to $1.43 billion in Apr-Aug period

Outstanding NRI deposits declined to $134.68 billion at the end of August 2022 from $141.52 billion a year ago

Rupee depreciates 14 paise to 82.35 against US dollar in early trade

The rupee depreciated 14 paise to 82.35 against the US dollar in the morning trade on Wednesday amid the strengthening of the American currency and sustained foreign fund outflows. Moreover, risk aversion sentiment among investors and weak Asian and emerging market currencies weighed on the local unit. At the interbank foreign exchange, the domestic unit opened at 82.32 against the dollar, then lost further ground to 82.35, registering a loss of 14 paise over its previous close. In a highly volatile session, the local unit also touched 82.28 against the American currency in initial deals. On Tuesday, the rupee rebounded from its all-time low to close 19 paise higher at 82.21 against the US dollar. "Most Asian and emerging market peers were weaker this Wednesday and will weigh on sentiments," Sriram Iyer, Senior Research Analyst at Reliance Securities said, adding that investors will remain cautious ahead of the release of key domestic macro data. India's inflation, IIP and ...

RBI issues consolidated guidelines on unhedged foreign currency exposure

The Reserve Bank on Tuesday modified and consolidated guidelines for banks on unhedged foreign currency exposures of any entity to prevent losses due to heightened volatility in the forex market. The RBI has, from time to time, issued several guidelines, instructions and directives to the banks on Unhedged Foreign Currency Exposure (UFCE) of the entities, which have borrowed from banks. In the wake of a bank seeking clarification on various aspects related to UFCE, the RBI said a comprehensive review of the extant guidelines has been undertaken and all the existing instructions on the subject have been consolidated. These instructions shall come into force from January 1, 2023, it said in a circular. In an explanatory note, the RBI said unhedged foreign currency exposure of any entity is an area of concern not only for the individual entity but also for the entire financial system. Entities which do not hedge their foreign currency exposure can incur significant losses during a pe

Rupee depreciates 38 paise to 81.78 against US dollar in early trade

The rupee depreciated 38 paise to 81.78 against the US dollar in early trade on Monday, tracking a muted trend in domestic equities and risk-off sentiment among investors. Besides, surging crude prices in the international market impacted the domestic unit, traders said. At the interbank foreign exchange, the local currency opened weak at 81.65 against the dollar, then lost further ground to quote at 81.78, registering a loss of 38 paise over its previous close. The rupee settled 33 paise higher at 81.40 against the dollar on Friday. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.04 per cent to 112.08. Brent crude futures, the global oil benchmark, surged 2.77 per cent to USD 87.50 per barrel. In the domestic equity market, the 30-share BSE Sensex was trading 66.60 points or 0.12 per cent lower at 57,360.32, and the broader NSE Nifty fell 12.90 points or 0.08 per cent to 17,081.45. After infusing funds in the las

RBI's rate hike to increase EMIs; equity, forex markets give thumbs up

The Reserve Bank's decision on Friday to raise the key interest rate by half a percentage point will increase the EMIs for home, auto and other loans, though the hawkish move was cheered by both equity and forex markets, with the benchmark BSE Sensex rising more than 1,000 points and the rupee appreciating by 33 paise against the US dollar. Meanwhile, the government announced a steep 40 per cent increase in price of natural gas which will eventually make CNG and piped gas dearer for consumers. Within hours of the RBI increasing the benchmark lending rate (repo) to a three-year high of 5.9 per cent, India's banking sector giant SBI and largest mortgage lender HDFC raised their loan rates by 50 basis points. Other banks and NBFCs are likely to follow soon. Since May, the central bank has raised the repo rate by 190 basis points in its fight against elevated inflation. In view of the deteriorating global situation and domestic inflation, the RBI has lowered its GDP growth projection f

Analysts see Rupee hitting 85 levels; Fibonacci charts, too, show weakness

As per the weekly Fibonacci chart, the Rupee can depreciate to 82 - 82.20 - 82.40 during the week. However, in case the currency sustains below 81.55-level a corrective move to 80.50 seems possible.