Sensex posts best figures in 3 months; rupee weakens as FPIs keep pulling out
There are price linkages between the offshore and onshore markets. During the depreciation of the rupee in 2013, the offshore market disrupted the domestic market for forex
Gold and international funds, too, act as currency hedges
The committee submitted its report to the RBI governor on Thursday
Whilst the noise on feasibility of budget numbers and risks on sovereign borrowing would persist in the near term, the budget outcome has certainly eased the job for RBI MPC to ease rates further
Government emissaries had met a spectrum of foreign investors in the past couple of months to figure out ways to draw in more capital into the economy
Since the start of the year local companies have raised a record $12.9 billion via offshore bonds and $12.3 billion from loans, the highest in three years
An anomaly in India's currency forwards market is piquing the curiosity of traders. A few theories have sprung up to explain the move
With inflows poised to accelerate after the election result, the Reserve Bank of India may have to rein in the currency
Modi's thumping win puts his nationalist party on course to increase its majority on a mandate of business-friendly policies
Rupee had last seen a similar jump on March 18
Rorecasts were downgraded from a survey conducted a month ago when contributors expected the currency to trade at 70.00
The election outcome by the end of May is crucial for the currency
The rupee closed at 69.87 a dollar on Wednesday, down from its previous close of 69.62
The currency has shown a tendency to flip directions after polls have been completed, according to a study by Edelweiss Securities Pvt
In the latest survey of nearly 50 strategists, taken April 1-3, the rupee was forecast to weaken about 3 percent over the next year to 70.38
RBI's proposal to swap $5 billion with banks is also viewed positively by the market
Elections, fiscal slippage, inflation bottoming and risk of oil prices picking up closer to $70 a barrel in May if Iran crude waiver expires remain key risks
The Goldman bonds, even with zero coupon, are issued at a discount implying a yield of 6.947%
The rupee is already the worst performer this year in Asia ex-Japan amid the uncertainty surrounding the upcoming elections, where Prime Minister Narendra Modi is seen facing a tight contest