Depreciating rupee to make India's import costlier and export beneficial
Benchmark Brent crude oil was trading at $76.74 a barrel in early Asian trade
The rupee was trading at 71.88 to the dollar after briefly falling to 72.04 in early trade
India's short-term debt obligations, which included non-resident deposits as well as overseas commercial borrowings by companies, totaled $217.6 billion in 2017
The currency fell to 72.12 a dollar in intra-day trade, but closed just below the 72-mark
Rupee's nominal value in July should have been around 73.90 to show its fair value against its 36 trading partners
RBI should not spend dollars defending the rupee
While aluminium reported a weekly gain of 6.2% at Rs 150 a kg for near month delivery on Thursday on MCX, copper was up 2.3% to Rs 420 a kg
The Indian currency lost 3.5% last month and is the worst performer in Asia so far this year
The rupee has come under pressure due to a multitude of factors
Forex dealers said besides robust month-end demand for the American currency from oil importers, dollar's strength against its rival currencies on expectations of rising interest rates amid lingering
The rupee had recorded a steep fall of 49 paise, to close at record low of 70.59 against the dollar in the previous session.
The Reserve Bank of India likely sold dollars, though the force was mild, according to two senior forex officials at state-run banks
Kumar also said we have to do away with the mentality of judging an economy's strength
Rupee leaps from life low to snap weeks of decline despite
global headwinds
Forex: The rupee staged a spirited recovery from its
life-time low to end higher by a whopping 24 paise at 69.91
against the US currency in a highly volatile week on bouts of
dollar selling by exporters and corporates.
After a seemingly endless stream of gloomy news and
falling values, sentiment has finally started to show signs of
improvement globally against the backdrop of the upcoming
visit of Chinese delegates to the US in order to re-ignite
trade talks.
Easing contagion risk on emerging-market currencies
after last weeks carnage also added a positive vibe on the
trading front.
The domestic currency larely withstood the headwinds
of surging crude prices and trade deficit worries.
The benchmark B
Rajan says, this is a time where countries should be focusing on getting the macro stability in order
Finance ministry has linked rupee weakness to external factors
The recent fall in rupee will raise funding costs
The three sectors with the biggest gains are PSU banks (up 14.3%), pharma (11.4%) and metals (up 10.4%)
The rupee may not always depreciate, and international markets also go through ups and downs