Thursday, March 4

Tag: US Dollar

News

RBI likely to have intervened to support rupee

MUMBAI: The Reserve Bank of India (RBI) is said to have intervened lately in the currency market to arrest the rupee’s slide that, many believe, owes more to speculative trade than the business fundamentals of a fast-reviving economy. RBI is reportedly selling dollars on a large scale after nearly three quarters to stem the local unit’s value erosion, dealers said. “The central bank, backed by record forex reserves is now much better equipped to check any sharp erosion in the rupee’s value,” said Anindya Banerjee, currency analyst at Kotak Securities. “After a long gap since June, it was seen intervening in the market via dollar sales. RBI’s suspected intervention likely curbed speculative bets.” The rupee ended a three-day losing streak, climbing 18 paise to 73.37 to a dollar. The cent...
India

Rupee Surges 16 Paise to 72.33 Against US Dollar in Early Trade

A man counts Indian currency notes inside a shop in Mumbai, India, August 13, 2018. (REUTERS)On Monday, the rupee had settled at 72.49 against the American currency. Weak US dollar, strong Asian currencies and foreign portfolio investment (FPI) flows into the markets could lend support to the domestic currency, Reliance Securities said in a research note.PTI Last Updated: February 23, 2021, 11:09 ISTFOLLOW US ON:The rupee appreciated 16 paise to 72.33 against the US dollar in opening trade on Tuesday tracking positive domestic equities and strong Asian currencies. At the interbank forex market, the domestic unit opened at 72.36 against the US dollar and inched higher to 72.33 against the greenback, registering a rise of 16 paise over its previous close.On Monday, the rupee had settled a...
Markets

A currency strategy that’s drawing more hot money to India

The Reserve Bank of India’s strategy to shift some of its currency intervention to the forwards market is adding to its problems. Its balancing act to keep the rupee stable amid heavy foreign inflows while also keeping excess liquidity in check is flooding the market with more foreign funds, prompting a vicious cycle of interventions. The RBI’s outstanding forwards book grew to $28.3 billion as of November from a negative $4.9 billion in the fiscal year 2019-20, highlighting the extent of its operations. That’s pushed the 12-month implied yields, which typically reflect the interest rate differential between India and U.S., to the highest in more than four years, fueling further inflows. BloombergThe RBI’s currency intervention works like this -- it buys dollars in the spot market to pr...
Stock

Signs of life in the US dollar threatens India’s post-Budget stocks rally

MUMBAI: The foundation of the ongoing bull run in domestic and global equities rests on three assumptions: continuation of ultra-loose monetary policies, vaccine-induced economic recovery and the impending bear market in the US dollar. Of these three assumptions, the last one is about to be tested severely in the coming weeks. The US dollar is expected to witness a sharp recovery in the coming weeks and that will test several global investors’ call of a multi-year bear market in the reserve currency of the world. “While we retain the view that the US dollar is completing a major topping pattern after the bull cycle that unfolded off the 2011 lows, we do have evidence on the daily charts that the greenback is set for a short-term counter-trend move,” Lawrence Balanco of CLSA said in a re...
Stock

ETMarkets Morning Podcast: Indian punters join the GameStop party | The Economic Times Markets Podcast

Hi there! Welcome to ETMarkets Morning, the show about money, business and markets. I am Sandeep Singh, and here is what we have to start your day.>> Indian punters join the GameStop party>> Ray Dalio calls Bitcoin 'one hell of an invention'>> Airtel again ahead in user additionAND>> Sundaram buys out Principal Mutual FundAnd there is more. But first, a quick glance at the state of the markets..>> Nifty futures on the Singapore Exchange traded 112.75 points or +0.8 per cent higher at 8:45 am, in signs that Dalal Street was headed for a gap-up start.ELSEWHERE>> Asian stocks followed US peers higher on Friday after steps to curb volatile retail-trader speculation and solid corporate earnings eased nerves on Wall Street. Japan’s Topix index advanced 0.3%...
Stock

ETMarkets Morning Podcast: FII-heavy stocks take a big hit in current selloff | The Economic Times Markets Podcast

Hi there! Welcome to ETMarkets Morning, the show about money, business and markets. I am Sandeep Singh, and here is what we have to start your day.>> FII-heavy stocks take a big hit in current selloff>> Deutsche Bank avoids Adani bond over green concern>> Sebi wants minority investors' say in appointment of executivesAND>> US Fed pledges to keep rates low for longAnd there is more. But first, a quick glance at the state of the markets..>> Nifty futures on the Singapore Exchange traded 102 points or 0.73 per cent lower at 8:40 in the morning, in signs that there could be more pain ahead on Dalal Street.ELSEWHEREAsian stocks skidded on Thursday following a sharp Wall Street decline amid deepening concerns about stretched valuations in equities markets. Japan’...
Rupee rises 45 paise to 75.27 against US dollar in early trade – business news
Business

Rupee rises 45 paise to 75.27 against US dollar in early trade – business news

The rupee appreciated 45 paise to 75.27 against the US dollar in early trade on Friday tracking positive opening of domestic equities and weakness in the American currency. Forex traders said a positive start of domestic stocks and significant foreign fund inflows supported the local unit. At the interbank foreign exchange, the rupee opened at 75.36, then gained ground to touch 75.27, registering a rise of 45 paise over its previous close. On Wednesday, the rupee had settled at 75.72 against the US dollar. Forex market was closed on Thursday on account of Buddha Purnima. Domestic bourses were trading on a positive note on Friday with the benchmark Sensex up 456.86 points at 31,900.24 and broader Nifty rising 139.70 points to 9,338.75. Foreign institutional investors were ne...
Rupee rises by 18 paise to end at 75.54 against US dollar – business news
Business

Rupee rises by 18 paise to end at 75.54 against US dollar – business news

The rupee appreciated by 18 paise to settle at 75.54 against the US dollar on Friday, tracking higher domestic equities and weakness in the American currency. Forex traders said positive cues from domestic equities and significant foreign fund inflows supported the local unit. At the interbank foreign exchange, the rupee opened higher at 75.36 but pared some initial gains to close at 75.54 against the US dollar, registering a rise of 18 paise over its previous close. Forex market was closed on Thursday on account of Buddha Purnima. Foreign institutional investors were net buyers in the capital market, as they bought equity shares worth Rs 19,056.49 crore on Thursday, according to provisional exchange data. Meanwhile, the dollar index, which gauges the gree...
Rupee slips 18 paise to 75.81 against US dollar in early trade – business news
Business

Rupee slips 18 paise to 75.81 against US dollar in early trade – business news

The rupee depreciated 18 paise to 75.81 against the US dollar in opening trade on Wednesday amid strengthening American currency overseas and sustained foreign fund outflows. Forex traders said the weakness in the rupee was largely due to the strengthening US dollar. Moreover, rising coronavirus cases in the country also weighed on the local unit. The local unit opened weak at 75.77 at the interbank forex market and then fell further to 75.81, down 18 paise over its last close. It had settled at 75.63 against the US dollar on Tuesday. Forex traders said market participants were concerned that the sharp rise in coronavirus cases could weigh on the economy. In India, the death toll due to Covid-19 rose to 1,694 and the number of cases climbed to 49,391 in the country on Wedne...
Rupee settles 64 paise lower at 75.73 against US dollar – business news
Business

Rupee settles 64 paise lower at 75.73 against US dollar – business news

The Indian rupee depreciated by 64 paise to settle at 75.73 (provisional) against the US dollar on Monday tracking heavy sell-off in domestic equities and a strengthening greenback overseas.Traders said the weakness in the local unit was largely due to heavy correction in domestic equities and strengthening of the US dollar.Moreover, rising coronavirus cases in the country also weighed on the local unit, they said.The rupee opened weak at 75.70 at the interbank forex market and then lost further ground to finally end at 75.73, down 64 paise over its last close.During the day the domestic unit saw an intra-day high of 75.65 and a low of 75.80.It had settled at 75.09 against the US dollar on Thursday.Forex market was closed on Friday on account of Maharashtra Day.Domestic bo...