The previous bout of Fed withdrawal fears had threatened to spark a crisis of confidence in India -- sending the rupee to a record low of 68.85 in late August and leading to steep falls in bonds and stocks.
Faced with sluggish economic growth and dwindling exports, China on Wednesday devalued its currency for the second consecutive day.
India and China achieved a major milestone this year when their bilateral trade crossed the landmark figure of $100 billion but it did not generate any fanfare in both capitals as the two Asian giants are going through a "particularly bad patch" in their relations due to a set of actions by Beijing in violation of agreements that led to the military standoff in eastern Ladakh. Starting with a modest $1.83 billion in 2001, the bilateral trade crossed $100 billion-mark in the first 11 months this year, a significant milestone for which the two countries carried out campaigns to boost trade and build it as a major stakeholder to improve the relations between two nations, whose ties otherwise remained frosty over the festering boundary dispute and strategic rivalry. According to last month's data from China's General Administration of Customs (GAC), the India-China bilateral trade totalled $114.263 billion, up 46.4 per cent year-on-year from January to November 2021.
The rupee snapped its two-day winning run against the dollar.
The rupee on Friday closed 10 paise higher at 65 against the US dollar on fresh selling of greenback by banks.
The rupee ended lower by 7 paise to 62.31 against the American currency on fresh dollar demand from banks.
RBI is unlikely to stem the slide against the dollar as the greenback is rising rapidly against all currencies in the world.
While good news from several quarters has been trickling in, El Nino might be a dampener, says T N Ninan.
The rupee gained 28 paise on Thursday to close at 62.50.
'Listing Masood Azhar as a 'global terrorist' was done with Islamabad and Imran Khan's concurrence.' 'It was not prompted by the so-called 'Wuhan spirit'.' 'The relationship between the two 'iron brothers' has not been dented,' points out former RA&W officer and China expert Jayadeva Ranade.
The rupee recovered by 11 paise to trade at 60.84 against the US dollar in early trade today on selling of the American currency by banks and exporters.
The country's two biggest state-run lenders on Saturday pitched for treating a portion of their gold deposits as part of the mandatory cash reserve ratio (CRR) or statutory liquidity ratio (SLR), both of which banks consider as non-productive.
Rupee hits more than two-year low; RBI intervenes
CAD refers to the difference between inflow and outflow of foreign exchange that has a bearing on exchange rate.
India is looking at near close to double-digit growth this year and the country will be one of the fastest-growing economies, Finance Minister Nirmala Sitharaman has said. The minister also emphasised that she expects the economic growth next year to be in the range of 7.5-8.5 per cent, which will be sustained for the next decade.
Consistent capital inflows and a recovery in local equities helped the local unit to trim initial losses
Financial shares were among the top gainers with HDFC leading the gains.
Good foreign capital inflows failed to restrict the rupee's fall against the dollar
India must focus on reforms.
Tehran plans to lift exports by 500,000 barrels per day
The HSBC/Markit purchasing managers index for the manufacturing industry stood at 50.1 in July, slightly more than 50.3 in June, indicating a broad stagnation of manufacturing operating conditions in India.
Persistent foreign capital inflows also boosted sentiment.
'What will this supposedly more business-friendly government do if it gets a second term?' 'Important labour law and land reforms remain off the table.' 'Witness the arm-twisting of foreign players in e-commerce and all but one player in telecom -- and it is very hard to justify this perception that the BJP is business friendly.' 'There will also remain the real risk of ideas seemingly gleaned from the pages of Amar Chitra Katha, overlaid with PowerPoint presentations,' predicts Rahul Jacob.
Given Indian corporates's high indebtedness, new credit will be used for servicing loans rather than building factories. This is setting us up for more companies on life support and more zombie banks, warns Rahul Jacob.
Rupee ended weak against the dollar.
Forex dealers said besides dollar's gains against the euro overseas, increased demand from importers for the US currency and a lower opening in the domestic equity market also put pressure on the rupee.
Sensex remained volatile through the day.
The trading range for the Spot USD/INR pair is expected to be within 66.20 to 67.00.
India must reckon with the possibility that it will struggle to attract higher overseas investment.
The RBI fixed the reference rate for the dollar at 65.2525 and for the euro at 72.1954.
Global events will continue to be in the limelight, besides domestic policy.
The rupee had gained 28 paise against the American currency to settle at nearly two-month high at 66.74 in Monday's trade.
The rupee ended weaker against the greenback on domestic worries.
Data on the real value of the currency against other currencies tells a different story.
At 11:37 am, the S&P BSE Sensex was up 28 points at 27,037 and the Nifty50 was up 2 points at 8,268
The rupee appreciated further on Thursday, adding 106 paise to 66.01 against the dollar, after steps taken by new Reserve Bank of India Governor Raghuram Rajan to attract US currency inflows boosted market sentiment.
Infrastructure and inflation targeting are expected to be top priorities for the new Reserve Bank of India governor, says A V Rajwade.
The NDA government was initially reticent about fleshing out its economic strategy for the future. But now that it has taken enough bold initiatives on the economic front it must have the confidence to tell us more about its approach going forward, says Abheek Barua.
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BSE auto index surged 2%, capital goods, healthcare and oil & gas indices also up.
A lower opening at the domestic equity market and the dollar's rise against other major currencies overseas also put pressure on the rupee, dealers said.
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