Page 2 - Indian Rupee

Rupee falls 10 paise to 82.75 against US dollar on foreign outflows

The rupee depreciated by 10 paise to 82.75 against the US dollar in early trade on Thursday amid negative trends in the domestic as well as global equity markets and continued outflow of foreign funds. At the interbank foreign exchange, the domestic unit opened weaker at 82.77 against the US dollar and traded in the range of 82.80 and 82.71. Later, the domestic unit was trading at 82.75 against the greenback, registering a fall of 10 paise. On Wednesday, the rupee settled at 82.65 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was 0.10 per cent lower at 104.54. Global oil benchmark Brent crude futures rose 0.61 per cent to USD 74.14 per barrel. The 30-share BSE Sensex was trading 116.67 points or 0.20 per cent lower at 57,439.23 points while the broader NSE Nifty was down 34 points or 0.2 per cent at 16,938.15 points. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on ..

Banks from 18 nations open 30 special vostro accounts for trade in rupee

Several banks, including HDFC Bank and UCO Bank, have opened as many as 30 special vostro accounts as of date to facilitate overseas trade in the rupee, a top government official said on Wednesday. Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi said as of date, some 18 countries have already opened special vostro accounts with Indian banks. "About 30 banks from overseas countries have signed up with 30 banks on our side, so 30 accounts...The transaction has started in bits and pieces," he told reporters here. Sberbank and VTB Bank -- the largest and second-largest banks of Russia, respectively -- are the first foreign lenders to receive the approval after the RBI announced the guidelines on overseas trade in the rupee in July last year. Another Russian bank Gazprom, which does not have its unit in India, has also opened this account with Kolkata-based UCO Bank. The move to open the special vostro account clears the deck for settlement of payments in rupee for trade

Amid unabated fund outflow, rupee falls 25 paise to 82.62 against US dollar

The rupee declined by 25 paise to 82.62 (provisional) against the US dollar on Wednesday amid a strong greenback against major currencies overseas and unabated foreign fund outflows. Traders said negative sentiment in the domestic equity market also hit the domestic currency. At the interbank foreign exchange, the domestic unit opened strong at 82.32 against the dollar and traded in a range of 82.30 and 82.62. It finally settled at 82.62 (provisional) against the American currency, a fall of 25 paise against its previous close. This is the third consecutive day of decline in the rupee. On Tuesday, the rupee settled at 82.37 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.43 per cent to 104.04. Global oil benchmark Brent crude futures rose 0.46 per cent to USD 77.81 per barrel. On the domestic equity market front, the 30-share BSE Sensex fell 344.29 points or 0.59 per cent to 57,555.90 points whi

Banks from 18 countries get RBI's nod to trade in rupee: Centre in RS

Speaking in Rajya Sabha, Union Minister of State for Finance Bhagwat Kishanrao Karad said that 60 such approvals have been given by the RBI

Rupee falls 26 paise to 82.49 against US dollar

The rupee declined by 26 paise to 82.49 (provisional) against the US dollar on Tuesday amid stronger dollar, negative sentiment in the domestic equity market and unabated foreign fund outflows. At the interbank foreign exchange, the domestic unit opened lower at 82.27 against the dollar and traded between the range of 82.24 and 82.50 during intra-day. It finally settled at 82.49 (provisional) against the American currency. This is the second consecutive day of decline in the Indian currency. On Monday, the rupee settled at 82.23 against the US dollar. Jateen Trivedi, VP Research Analyst at LKP Securities, attributed the fall in rupee to the spillover fears after the collapse of the Silicon Valley Bank in the US. "The Rupee fall continued as the Silicon Valley Bank in the US has spread concerns over the spillover fears after its collapse and in line with Asian peers. Rupee this time, fell below 82.48 levels which were last seen on 3rd March 23. "The ripple effect can keep the forex

Rupee depreciates 12 paise to 82.35 against US dollar in early trade

The rupee depreciated by 12 paise to 82.35 against the US dollar in early trade on Tuesday, amid stronger dollar and foreign fund outflow from the domestic equity market. At the interbank foreign exchange, the domestic unit opened lower at 82.27 against the dollar and rose to 82.24 before slipping to 82.35. On Monday, the rupee settled at 82.23 against the US dollar. The dollar index, which gauges the greenback's strength against a basket of six currencies rose 0.26 per cent to 103.86. Global oil benchmark Brent crude futures fell 1.08 per cent to USD 79.90 per barrel. On the domestic equity market front, the 30-share BSE Sensex was trading 36.50 points or 0.06 per cent higher at 58,274.35 points while the broader NSE Nifty was up 38.85 points or 0.23 per cent to 17,193.15 points. Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Monday as they offloaded shares worth Rs 1,546.86 crore, according to exchange data. The collapse of two banks in the U

Rupee appreciates 25 paise to 81.81 against US dollar in early trade

The rupee appreciated by 25 paise to 81.81 against the US dollar in early trade on Monday, tracking positive sentiments in the domestic equity market and subdued dollar against major currencies. At the interbank foreign exchange, the domestic unit opened at 81.78 against the dollar and slipped to 82.06. Later, it gained ground to reach 81.81 registering an increase of 25 paise over its previous close. On Friday, the rupee settled at 82.06 against the US dollar. The dollar index, which gauges the greenback's strength against a basket of six currencies fell 0.77 per cent to 103.78. Brent crude futures, the global oil benchmark, rose 0.30 per cent to USD 83.03 per barrel. In the domestic equity market, the 30-share BSE Sensex was trading 262.24 points or 0.44 per cent higher at 59,397.37 points. The broader NSE Nifty rose 79.50 points or 0.46 per cent to 17,492.40 points. Investors are closely watching the developments following the collapse of the Silicon Valley Bank in the US. On

TMS Ep387: Kishore Biyani, Indian rupee, markets, High Seas Treaty

What makes Kishore Biyani's Future tense? Is the rupee headed for internationalisation? Will Fed action, inflation data sway markets? What is the High Seas Treaty? All answers here

Indian exporters need to adapt strategy given low rupee premiums: Analysts

Premiums are not expected to move back to the 4%-5% level given the inflation outlook and the likelihood that the Fed will keep rates higher for longer

Rupee depreciates 8 paise to 82.14 against US dollar in early trade

The rupee depreciated by 8 paise to 82.14 against the US dollar in early trade on Friday, weighed down foreign fund outflows and losses in domestic equities. At the interbank foreign exchange, the domestic unit opened weak at 82.12 against the dollar fell further to 82.14, registering a decline of 8 paise over its last close. On Thursday, the rupee settled at 82.06 against the US dollar. "The 81.70-80 zone seems protected by the importer's dollar demand and suspected RBI intervention, which brought the INR back to 82.00 levels," CR Forex Advisors MD Amit Pabari said. Moreover, the March seasonality due to the financial year end and prospects of further FDI flows could help the rupee limit losses, despite weaker Asian peers over the past month, Pabari added. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.11 per cent to 105.18. "The DXY weakened from 105.70 to 105.20 as traders booked profits on the back of increased unemployment

Need better rupee management to deal with internationalisation: RBI Dy Guv

India needs to gear up to manage the exchange rate volatility as the country progresses on the path of internationalisation of rupee and freer capital account convertibility, according to Reserve Bank Deputy Governor M Rajeshwar Rao. He also said that internationalisation of rupee has its own benefits as well as challenges and risks which the country and the Reserve Bank of India (RBI) will have to deal with. Delivering the keynote address at the 17th FEDAI conference at Cairo on Sunday, Rao said as the economy grows and becomes more developed, the scope of participation in foreign exchange markets would change. "With the increasing integration of the economy with the rest of the world, more and more entities are likely to, directly or indirectly, get exposed to foreign exchange risks. There are likely to be demands for permitting hedging of economic exposures," he said. A whole new market with a new set of market participants has opened up, with banks in India being allowed to ...

India must prepare to curb volatility risks of int'l rupee: RBI deputy gov

An international currency is one that is freely available to non-residents, essentially to settle cross-border transactions, and in the case of the rupee, this will be achieved by promoting it An inte

Rupee appreciates 13 paise to 81.82 against US dollar in early trade

The rupee gained 13 paise to 81.82 against the US dollar in early trade on Thursday, boosted by foreign fund inflows. At the interbank foreign exchange, the domestic unit opened at 81.93 against the dollar, then climbed to 81.82, registering a rise of 13 paise over its previous close. On Wednesday, the rupee closed at 81.95 against the US currency. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.02 per cent to 105.63. Overall, higher US bond yields and risk-off-tilted equity sentiment are making a base case for the stronger USD, CR Forex Advisors MD Amit Pabari said, adding that FDI and FPIs have acted as life support for the rupee. "In March, they (FPIs) are net investors with more than Rs 10,000 crore in equities... we could see rupee trading in the range of 81.50 to 82.50 over the short-term," Pabari said. Foreign Institutional Investors (FIIs) were net buyers in the capital market on Wednesday as they purchased sha

Rupee slips, bond yield jumps to 4-month high on hawkish Fed signals

So far in 2023, the yield on the 10-year bond has jumped 12 basis points (bps)

Rupee slides as Federal Reserve's Powell hints at higher US terminal rates

In a bid to bring down high inflation, the Fed has, since March 2022, hiked interest rates by 450 basis points

Rupee appreciates 24 paise to 81.73 against US dollar in early trade

The rupee gained 24 paise to 81.73 against the US dollar in early trade on Monday amid a positive trend in domestic equities. Forex traders said foreign fund inflows also supported the local unit. At the interbank foreign exchange, the domestic unit opened at 81.85 against the dollar, then climbed to 81.73, registering a rise of 24 paise over its previous close. On Friday, the rupee closed at 81.97 against the US currency. The forex traders said the rupee is likely to trade with a positive bias on improved global risk sentiments and fresh foreign fund inflows. Moreover, weak crude oil prices and muted dollar index may also support the domestic currency, they added. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.09 per cent to 104.43. Brent crude futures, the global oil benchmark, declined 0.70 per cent to USD 85.23 per barrel. In the domestic equity market, the 30-share BSE Sensex rose 564.81 points or 0.94 per cent

India, Sri Lanka mulling over using Indian Rupee for economic transactions

India and Sri Lanka are exploring the possibility of using the Indian Rupee for economic transactions and have discussed the initiative that will help in building a stronger and closer partnership through trade and investment-led measures between the two countries. The High Commission of India here organised a discussion on the use of the Indian Rupee (INR) for transactions between India and Sri Lanka on Thursday. "Representatives from the Bank of Ceylon, State Bank of India and the Indian Bank shared their experiences and informed the audience that they had started carrying out INR-denominated trade transactions through respective Vostro/Nostro accounts after the creation of enabling framework by the Reserve Bank of India (RBI) and the Central Bank of Sri Lanka (CBSL) in 2022," the High Commission said in a statement. The participating banks also outlined the benefits of settlements denominated in INR which includes shorter timelines, lower exchange costs and easier availability of

Rupee appreciates 22 paise to 82.36 against US dollar in early trade

The rupee gained 22 paise to 82.36 against the US dollar in early trade on Wednesday amid a positive trend in domestic equities. Forex traders said sustained foreign fund outflows weighed on the local unit and restricted the appreciation bias. At the interbank foreign exchange, the domestic unit opened at 82.48 against the dollar, then gained ground and rose to 82.36, registering a rise of 22 paise over its previous close. On Tuesday, the rupee closed at 82.58 against the US currency. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.02 per cent to 104.84. Brent crude futures, the global oil benchmark, advanced 1.75 per cent to USD 83.89 per barrel. In the domestic equity market, the 30-share BSE Sensex rose 202.36 points or 0.34 per cent to 59,164.48 points. The broader NSE Nifty advanced 60.80 points or 0.35 per cent to 17,364.75 points. Foreign Institutional Investors (FIIs) were net sellers in the capital market on

Rupee pulls back from 82.95 on likely heavy US dollar selling by RBI

10-year bond yield rises above 7.45% for first time since November 7

Rupee depreciates by 10 paise to close at 82.85 against US dollar

The rupee depreciated by 10 paise to close at 82.85 (provisional) against the US currency on Monday as a stronger dollar in the overseas market and a muted trend in domestic equities weighed on investor sentiments. At the interbank foreign exchange market, the rupee opened at 82.87 against the greenback and closed at 82.85 (provisional), registering a fall of 10 paise over its previous close of 82.75. During the session, the domestic unit witnessed an intra-day high of 82.82 and a low of 82.94 against the American dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading marginally lower at 105.15. Global oil benchmark Brent crude futures advanced 0.46 per cent to USD 83.54 per barrel. The Indian rupee depreciated on weak domestic markets and a strong greenback. Surge in crude oil prices and FII outflows also weighed on rupee, said Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas. Dollar strengthened on