08 June 2012
Rupee opens lower; global risk assets hit
Mumbai: The rupee opened weaker against the dollar on Friday, retreating from a 2-week high in the previous session, as investors dumped riskier assets on reduced hopes for more monetary stimulus by the Federal Reserve.
07 June 2012
Rupee hits 2-week high; China rate cut helps
Mumbai: The rupee breached the 55-per-dollar mark on Thursday, hitting its strongest level against the dollar in more than two weeks, as a rate cut in China in late trade further boosted a revival in global risk sentiment.
06 June 2012
Rupee gains for 3rd day; few see sustained rebound
Mumbai: The rupee strengthened against the dollar for a third straight session on Wednesday, tracking gains in the euro and as sharp gains in domestic stocks signalled improved demand for risk assets.
05 June 2012
Rupee ends flat; RBI may have supported
Mumbai: The rupee ended little changed on Tuesday as dollar sales by exporters and suspected central bank intervention helped offset the pressures from a weaker euro and from demand for the US currency from oil firms.
04 June 2012
Sliding rupee works to the advantage of Indian migrants
New Delhi/Mumbai/Bangalore: Shariff P.A., 29, is a typical migrant from Kerala working in Saudi Arabia. He repatriates a fairly substantial part of his salary back home to Nilambur to support his family—wife, two children and parents. For remittance-dependent Kerala and people like Shariff who’re sending the money, the slump in the rupee has been a boon.
Rupee falls; some see bottom
Mumbai: The Indian rupee weakened for the first day in three against the dollar, retreating from a one-week high earlier, as oil importers stepped in to buy the US unit, while waning greenback sales by corporates and exporters in late trade also hurt.
03 June 2012
Rupee should be allowed to find its own path, says survey
Mumbai: The Reserve Bank of India (RBI) should let the rupee find its level rather than try to force it to strengthen by selling dollars, economists and currency dealers told a survey.
Declining rupee, high costs lead to mixed results in pharma space
Mumbai: India’s Rs1 trillion drugs and pharmaceuticals industry reported a widely varied financial performance for the January-March quarter.
01 June 2012
Rupee posts ninth straight weekly drop
Mumbai: The Indian rupee strengthened on Friday on the back of dollar sales by corporates but it still posted a ninth consecutive weekly drop, its worst losing streak since the Lehman crisis.
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31 May 2012
Debt worries rise for students eyeing foreign schools
New Delhi: As the rupee’s slide continues unabated, Natasha Kumar knows she’ll need to take on a larger debt burden to achieve her dream of going to Singapore for her master’s degree.
Added burden: Students at Princeton University. Studying in foreign universities has been a costly affair, but the rupee’s slump will make education more costly. Photo: Brendan McInerney/Mint
Kumar, currently a B. Tech student at the privately run Amity University in Noida, will have to pay around Rs. 18 lakh for her course at Nanyang Technology University (NTU) in Singapore.
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Where’s the new 10-year benchmark bond?
Mumbai: The Reserve Bank of India (RBI) has been slow in issuing new government securities to replace older ones—and bond traders were puzzled.
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Rupee at record low on euro concerns
Mumbai: The rupee on Thursday slumped to a record low, battered by continuing concerns from global markets and primarily tracking the fall in the euro.
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30 May 2012
Domestic tourism gains as rupee’s fall hits foreign travel
New Delhi/Mumbai: About three weeks ago, Expedia India Inc. offered a discount deal on domestic air tickets of Rs. 600 on all destinations, leading to a surge in bookings—by 350% over the previous month. Trade and industry say domestic tourism has been a collateral beneficiary of the slide in the rupee.
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Rupee touches a low of 56.17
Mumbai: The Indian rupee fell on Wednesday morning past the crucial 56-mark, with dealers attributing the slide to concerns emerging from persisting global uncertainties and the worsening fiscal situation in the domestic economy.
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29 May 2012
Shoring up the rupee
New Delhi: With an aim to attract more funds into the corporate debt market and to revive foreign capital inflows, the finance ministry on Tuesday allowed qualified foreign investors (QFIs) to invest up to $1 billion (around Rs. 5,560 crore) in corporate debt bonds.
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Views | The rupee: a reality check
Exchange rates are rarely conversation starters, but the recent slide of the rupee has generated huge public interest, even at a time when the fifth season of the Indian Premier League (IPL) gave us such so much to talk about thanks to the wonderful combination of skill and scandal.
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Falling rupee fails to cheer exporters, spooks inflows
New Delhi: In the normal course, a depreciating rupee should have made Indian exports cheaper and more competitive. But instead of celebrating the windfall from a 23% drop in the value of the rupee against the dollar in the last one year, the board of the main exporters’ lobby was busy over the weekend in Goa, charting a plan to deal with the volatile currency.
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Rupee snaps 3-day rally; oil buying hurts
Mumbai: The rupee dropped on Tuesday, snapping a three-day winning streak, as strong dollar demand from oil firms to meet month-end import commitments and a pullback in domestic shares from the day’s highs weighed heavily.
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28 May 2012
Rupee woes highlight economic drift
Mumbai: India’s rupee, which hit an unprecedented string of all-time lows last week, is set for more falls unless policy makers move quickly to put Asia’s third-largest economy back on track, analysts say.
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Rupee fall won’t hurt India’s ratings: Moody’s
Moody’s Investors Service says the depreciating rupee will only have a “limited” impact on India’s sovereign ratings, as only 7% of total government debt is placed overseas, comprising 5% of gross domestic product (GDP).
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25 May 2012
Eighth weekly drop for rupee; RBI intervenes
Mumbai: The Indian rupee strengthened for a second session on Friday, continuing its recovery from record lows hit this week, after the central bank stepped in to defend the currency, and exporters and custodian banks were heavy sellers of dollars.
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24 May 2012
Ourview | Don’t try to defend the rupee
As the rupee has tumbled against the dollar, there is growing chatter about how the Reserve Bank of India should intervene to support the Indian currency. Its intervention in the foreign exchange market so far has been modest and ineffective as far as preventing a further fall in the rupee goes.
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Rupee rebounds on dollar sales, revived sentiment
Mumbai: The rupee rose against the dollar for the first time in three days on Thursday, following dollar sales by exporters and a revival in investor sentiment in the local stock market after oil marketing companies decided to hike petrol prices from Wednesday midnight.
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23 May 2012
Call rise for govt to do more to stem Rs slide
Mumbai: The rupee’s seeming freefall against the dollar has had the pundits divided over the reasons why the Indian currency has become Asia’s worst-performing currency this year.
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Views | Are Indian companies shorting the rupee?
Wednesday saw the rupee touch that level against the US dollar, a new low. The official explanation has been that the Indian currency has been tumbling because of global risk aversion due to the continuing uncertainty in Greece. Others point to domestic problems such as the high current account deficit.
22 May 2012
Rupee slumps to a record low of 55.39 against dollar
Mumbai: The rupee slumped to a record closing low of 55.39 against the dollar on Tuesday as the US currency strengthened after rating company Fitch downgraded Japan’s sovereign credit rating, citing rising public debt. The rupee fell to as low as 55.47 in intra-day trading.
It was the fifth day in a row that the rupee plunged to a record low. The Indian currency has fallen more than 8% this quarter, making it Asia’s worst-performing currency.
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Chart of the day | The rupee-dollar and Sensex tango
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Views| Rupee on a slippery slope
These are the days of the rupee’s slide. On Tuesday, the Indian currency plumbed another low of 55.47 against the dollar. It is unlikely that it will regain ground unless the government takes drastic measures to restore confidence in the Indian economy. The Reserve Bank of India (RBI) cannot do more than what it already has done.
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Views | Rupee fall: How will macro adjustments play out?
The steep, 22% depreciation of the rupee since August 2011 has set off the inevitable comparison with the 1991 devaluation. Markets participants judge the currency correction to be near complete, although volatility around current levels is likely. Questions about macroeconomic adjustments that devaluation triggers naturally surface in this context. What is the likely pattern of correction? How long will adjustment take? And, perhaps the most important, will corrective macroeconomic policies follow through to correct the imbalances and return growth on track?
Graphic by PTI
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21 May 2012
Rupee crashes past 55 to the dollar to new low
Mumbai: The rupee crossed the psychological mark of 55 to the dollar, finding a new low of 55.05 on Monday on concerns about continuing uncertainty in the global markets, especially in the euro zone.
The partially convertible rupee, which opened at 54.48 on Monday, was trading at 55.03 in late evening trade. The local currency has fallen 10.7% since February. Traders see it dropping to 55.25 levels in the next few days on continuing high demand for the dollar.
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Rupee crashes to new low amid calls for special bond sale
Mumbai: As the rupee crashed past the mark of 55 to the dollar to a new closing low on Monday, calls have increased for special foreign exchange bonds to be sold by the government to stem the seemingly inexorable slide in the Indian currency after the limited impact that Reserve Bank of India (RBI) measures have had thus far on propping it up.
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RBI to take more steps to stabilize rupee: Gokarn
Mumbai: The Reserve Bank of India will continue to take steps to stabilize the rupee, but the currency’s direction will ultimately depend on capital flows, Subir Gokarn, a deputy governor at the central bank, said on Monday.
“We have done a number of things and will continue to do things that we think will have an impact of stabilizing the currency,” Gokarn said at the sidelines of an industry event.
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Falling rupee pulls down Essar Oil debt
Essar Oil Ltd, India’s second largest private refiner, benefited from a notional gain last fiscal as a sliding rupee pared its debt pile by nearly 14% in dollar terms. Foreign exchange movements that are roiling other corporate entities and making global investors jittery have had the unintended consequence of making Essar’s “dollarized balance sheet” look better.
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18 May 2012
Rupee rebounds after hitting latest record low
Mumbai: The rupee recovered after earlier dropping to its third consecutive daily record low, tracking a recovery in domestic stocks and after a central bank deputy governor said the Reserve Bank of India would continue to defend the currency.
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RBI may target oil cos’ dollar demand to stem rupee fall
Mumbai: As the rupee plumbs to record lows against the dollar, traders say the Reserve Bank of India (RBI) could go beyond interventions and target dollar demand from oil companies, an approach that if done right may just help stem the rout.
Having proved unable to contain the rupee’s falls via its actions in the forex markets, the RBI was widely reported to have met oil companies this week, and a look at the numbers shows why.
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17 May 2012
Rupee plunges to new low before RBI pulls it back
Mumbai: The rupee plunged to a new low against the dollar during trading hours on Thursday but bounced back after traders said the Reserve Bank of India (RBI) sold the greenback to support the local currency.
After touching a lifetime low of 54.57 to a dollar in the afternoon, the rupee quickly recovered lost ground after market buzz that the Indian central bank was selling dollars through a clutch of public sector banks.
The rupee closed at a record 54.535 against Wednesday’s close of 54.52, its lowest previous close.
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16 May 2012
Rupee slumps to life low; may fall more
Mumbai: The rupee slumped to a record low against the dollar on Wednesday as the global risk aversion added pressure on a currency already under fire from the country’s current account and fiscal deficits.
The rupee, the worst performing emerging market currency in Asia since 1 March, is facing further losses as India struggles with a slew of additional economic challenges, including sliding growth.
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Weak rupee actually helps India: CLSA
The rupee’s recent slide, which on Wednesday took it to a record low of 54.46 against the dollar, is not so bad after all, a couple of analysts say.
A weaker rupee at a time of falling oil prices would reduce concerns about inflation, according to this reasoning, while the ensuing boost in exports could reduce India’s trade deficit.
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RBI fighting a losing battle to stem rupee’s fall
Mumbai: The Reserve Bank of India (RBI) accepts that it is fighting a losing battle in trying to stem a fall in the rupee, a slide that has mirrored the slump in the once high-flying emerging market.
The force of dollar demand is such that the Reserve Bank of India can do little to check the fall, central bank officials say.
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15 May 2012
Rupee strengthens amid profit booking, RBI intervention
Mumbai: The rupee strengthened by about 20 paise after opening at 54.04 to the dollar amid speculation about sales of the US currency by the central bank and profit booking by foreign banks.
The Indian currency was trading at 53.78 to the dollar at 2.40pm local time. It weakened as much as 54.10 in morning trade when the Reserve Bank of India (RBI) moved to check its slide, according to traders. The rupee ended at 53.79.
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14 May 2012
Rupee falls to record close in global slump
Mumbai: The rupee fell to a record close of 53.9750 to the dollar as it joined in a global slump of currencies against the greenback. Traders said the Indian currency is set to slump further and the central bank will be unable to stem the slide as the rupee is following global cues, not domestic ones. The Monday close was near the lowest intraday level of 54.30 that the rupee reached on 15 December.
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11 May 2012
Mumbai: The rupee fell on Friday, posting its longest weekly losing streak since the 2008 global financial crisis, after data showing a contraction in factory output for March added to worries about the country’s economic outlook.
The rupee remains within sight of a record low of 54.30 against the dollar hit in December, having fallen for six consecutive weeks, its longest losing streak since a string of 11 weekly losses in late 2008.
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10 May 2012
Mumbai: The Reserve Bank of India (RBI) intervened on Thursday to stem the continued fall of the rupee, and announced measures to curb speculation and increase liquidity in the currency market.
The central bank directed exporters to convert 50% of their foreign currency holding with banks into rupee balances within a fortnight. The intervention—the fourth in six days—seemed to suggest it was beginning to focus on quantitative measures to limit demand after having tried to increase the inflow of dollars
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Central bank tries to get the rupee to swim against the tide
Mark to Market | Ravi Krishnan
The Reserve Bank of India’s (RBI’s) latest round of policy salvos aimed at propping up the rupee is a bit like using a water pistol to put out a forest fire. The central bank declared that foreign exchange earners should convert 50% of their holdings in foreign currency accounts to rupee balances. Economists estimate that this will lead to an inflow of $2-3 billion (Rs10,660-15,990 crore today) over the next couple of weeks.
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Ourviews | The rupee in doldrums
In essence, the rupee’s recent bout of depreciation is very similar to the situation that prevailed in late 2011. At that time, the high current account deficit, together with a drying up of capital inflows as the crisis in Europe threatened to spiral out of control, had led to a fall in the rupee. This time, too, nervousness in Europe about the outcome of the Greek elections combined with uncertainty about the policies that will be pursued by the new French president has led to another spell of risk aversion. All risk assets, including emerging market equities and currencies, have been affected.
After some dithering, the Reserve Bank of India (RBI) had, late last year, announced a series of measures to stem the currency depreciation, all of which had the same aim—to increase the supply of dollars. This time too, the objective of RBI has been to increase the supply of dollars. It has, therefore, relaxed the interest rate ceiling on foreign currency deposits and eased restrictions on using foreign currency deposits as collateral against lending to local residents. On Thursday, it said exporters need to liquidate 50% of dollars in their Exchange Earners’ Foreign Currency accounts within two weeks.
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Source Bloomberg, Citibank, Mint research / Graphics by Sandeep Bhatnagar / Mint
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Firm rupee pulls down gold prices, attracting traders
Mumbai: Indian gold prices fell to their lowest level in a month as the rupee gained against the dollar, triggering some buying by traders towards the end of the country’s wedding season.
The most-traded gold for June delivery was 0.82% lower at Rs28,443 per 10 grams, after hitting Rs. 28,300, a level last seen on 9 April.
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Rupee posts muted gains despite RBI actions
Mumbai: The rupee recovered on Thursday from a record closing low hit the previous session after the central bank announced measures to boost dollar liquidity and ease intraday rupee volatility.
However, the local unit gave up a chunk of its gains against the dollar as traders doubted the measures, including requiring exporters to convert half their foreign exchange holdings into rupees, would be enough to prevent more falls in the local unit.
09 May 2012
Rupee drops on fears of continued outflows
Mumbai: The rupee suffered its biggest percentage fall in nearly five months against the dollar on Wednesday as investors pull out of global risky assets, sparking a new round of suspected intervention from the central bank.
Foreign investors have sold a net of nearly Rs1,000 crore ($187.88 million) of domestic equities in the previous two sessions, as political uncertainty in Greece combines with continued worries about taxation for investments from overseas.
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07 May 2012
The rupee: to buy or to sell?
Bare Talk | V. Anantha Nageswaran
Has the US dollar peaked against the Indian rupee? That is the big question. The answer to this question can lead to big gains or losses. In other words, we are not at one of those situations where the currency is trending up or down within a broad range. The rupee could be at an inflection point here. The currency weakened against the dollar in the second half of 2011. Euro zone worries, retrenchment of capital flows from the euro zone and global risk aversion caused the rupee to plummet. But then the rupee was not singled out then. The Turkish lira and South African rand kept it company. Hence, it was possible to interpret the movement in the dollar-rupee rate as part of the movement of currencies with high current account deficits struggling to attract capital in a risk-averse environment.
Click here to read full column
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Rupee gains on GAAR delay; RBI intervenes
Mumbai: The Indian rupee posted its biggest percentage gain against the dollar in six weeks on Monday after the country postponed controversial rules on foreign taxation by a year, helping soothe worries about flows.
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06 May 2012
Did You Know | What affects the value of rupee?
The Indian rupee slipped below 53 against the US dollar recently, second time in four months. The last time it touched this level was in December. It appreciated to the level of 48-49 in February.
Why does rupee fluctuate?
The value of a currency, like any traded goods or services, depends on demand and supply. If there is more demand of dollars in the currency market and is not adequately matched by the supply, other things remaining equal, the rupee price of dollar will go up or the rupee will depreciate. Conversely, if the supply of dollar is higher than the demand, the rupee will appreciate. We are referring to dollar as it is the most preferred hard currency for cross-border transactions.
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Ourview | A wobbly rupee
The rupee slipped below the psychological mark of 53 against the dollar for the second time in four months last week and, reportedly, the Reserve Bank of India had to intervene in this market.
The price movement of a currency, like any other traded asset in a market economy, carries a lot of information in itself. In this case, apart from the usual demand and supply fluctuations, there is something wrong with the economic fundamentals that are leading to the rupee’s volatility. The two key issues here are the country’s high current account deficit (CAD) and the government’s inability (or unwillingness) to contain its fiscal deficit. Both problems have spooked the markets. The negative outlook by ratings agency Standard and Poor’s only illustrates this point in a harsh manner.
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04 May 2012
Rupee slumps on trade deficit scare
New Delhi: The rupee fell precariously close to the psychological level of 54 per dollar on Friday in its worst weekly decline in more than a month, as concerns over a record trade deficit, which widened to 10.9% of gross domestic product (GDP) in the last fiscal, and deteriorating economic fundamentals take their toll on the currency and threaten to undermine India’s growth story.
The Indian currency declined 1.7% this week to 53.475 per dollar, the biggest drop since the trading week ended 23 March, according to data compiled by Bloomberg. It touched 53.9225 earlier on Friday, the lowest level since 15 December, when the currency fell to a record 54.305. On Friday, the currency pared losses to 0.1%, after falling as much as 1% earlier in the day, on suspected dollar selling by the Reserve Bank of India (RBI).
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Reserve Bank steps in to shore up rupee
Mumbai: The Reserve Bank of India (RBI) introduced fresh measures on Friday to attract foreign exchange inflows to the country and arrest the rupee’s rapid fall against the US dollar.
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02 May 2012
Talk Markets | Weakening rupee could hit markets
Mumbai: The markets are unlikely to move up in a hurry without the rupee’s tow because of the overhang of a depreciating currency. A weak rupee hinders fresh capital inflows unless risk appetite improves. Since April, the rupee has fallen 15%, touching a fourth month low of 53 per dollar on Wednesday as foreign institutional investors have removed $459 million from the Indian markets, during same period Sensex has declined 1%.
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Rupee drops, sparking suspected RBI action
Mumbai: The rupee dipped below 53 to the dollar on Wednesday, nearly touching a four-month low, as oil importers bought the US currency, but suspected central bank intervention helped it recoup some losses.
Though the rupee is likely to continue facing strong support at the 53 level in the near-term, traders expect further falls, given India’s fiscal and economic challenges, and fears that waning foreign flows will worsen the current account deficit.