Moody's may up Indian forex debt rating by mid-Feb
India's foreign exchange reserves rose by $1.379 billion for the week ended November 27, to $286.723 billion compared to $285.344 billion in the previous week.
Moody's and Fitch on Thursday downgraded Russia's sovereign rating to 'junk' grade following severe sanctions by western countries. While Moody's Investors Service downgraded Russia's long-term issuer and senior unsecured (local-and foreign-currency) debt ratings to 'B3' from 'Baa3', Fitch pulled down the rating on the country to 'B' from 'BBB', putting it on 'Rating Watch Negative'. The downgraded rating is in speculative or junk category reflecting default risk. It signifies that even through financial commitments are currently being met, the sovereign is vulnerable to high credit risk.
A sojourn in Seoul, one of Asia's largest metropolises, where the ultra-modern coexists with the ancient -- temples and palaces with futuristic skyscrapers climbing to the stratosphere, K-pop with Buddhism, a village within city limits.
The foreign exchange reserves rose by $2 billion to $279.096 billion for the week ended April 2 as against $277.042 billion in the previous week.
Equity markets may witness a gradual up-move this week with some volatility as both election and earnings season are nearing their end, analysts said, adding that global trends and trading activity of foreign investors would hold significance in dictating investors' sentiment. Benchmark indices, which had a record-breaking rally last week, would also track global oil benchmark Brent crude and the rupee-dollar trend. The monthly derivatives expiry on Thursday may also fuel volatility in markets.
India's foreign exchange reserves nearly hit a nine-month low and fell by $5 billion to $302 billion for the week ended December 16, on account of revaluation in foreign currency assets.
India's foreign exchange reserves rose by $4.405 billion for the week ended August 28, to $276.362 billion as compared to $271.957 billion in the previous week.The foreign currency assets (FCA), during the week, declined to $260.523-billion from $260.938 billion in the week-ago period, RBI said in its weekly report on Friday.
India said on Thursday domestic firms would be allowed to prepay existing foreign currency convertible bonds up to September 30, 2003.\n\n\n\n
After upgrading India's foreign currency debt rating, Moody's Investor Service on Wednesday upgraded the foreign currency deposit, debt and issuer ratings for 11 Indian banks and financial institutions.
After having declined for two consecutive weeks, India's foreign exchange reserves grew by $293 million to $282.84 billion compared to earlier week's $282.55-billion.
Country's foreign exchange reserves declined sharply by $3.433 billion to $351.920 billion.
The central government has given banks and credit card entities six to eight months to put in place the requisite reporting mechanism and related features to collect tax at source on international credit card transactions, a senior bureaucrat told Business Standard. According to the bureaucrat, the plan to bring overseas credit cards under the Liberalised Remittance Scheme (LRS) has not been mothballed and is simply being deferred so that banks get adequate time to get the system up and running. The official expects the reporting mechanism to be ready in the given time, and the rule could be implemented in the next financial year (2024-25, or FY25).
Currencies are traded 24 hours a day every working day.
There have been reports that the Rajapaksa brothers, which dominates the current Sri Lankan government, are not on the same page. Gota, it is said, is not on the same wave length as his elder brother, Prime Minister Mahinda Rajapaksa, the former president, or Finance Minister Basil Rajapaksa, who is seen to be the family's strategist.
In the previous week, reserves had declined by $1.03 billion to $353.33 billion.
Hinting at further relaxation in the capital account convertibility norms, RBI Deputy Governor T Rabi Sankar on Thursday said the country is on the cusp of some fundamental shifts with regard to currency management. India has come a long way in achieving increasing levels of convertibility on the capital account and has broadly achieved the desired outcome for the policy choices in terms of achieving a stable composition of foreign capital inflow, Sankar said while addressing the Foreign Exchange Dealers' Association of India's (FEDAI) annual day meeting. Convertibility refers to the ability to convert domestic currency into foreign currencies and vice versa to make payments for balance of payments transactions.
'Is this the only way for India to become a $5 trillion economy?' 'When you have unused foreign exchange here, why borrow more dollars?'
The 'P-3' ratings suggest acceptable ability to repay short-term obligations.
The country's foreign exchange reserves declined by $810.7 million to $318.579 billion for the week ended August 22, on account of drop in foreign currency assets.
The five-time prime minister was re-appointed to the job on May 12 following the political circus precipitated by the unprecedented economic crisis in the island's history.
Despite the narrowing spread of yields between the benchmark 10-year Indian government bond and the 10-year US Treasury bond, foreign portfolio investors (FPIs) are continuing to invest in the domestic debt market this year -- a trend backed by a stable currency and a less volatile bond market. FPIs have been net buyers in the debt market in 2023 so far, marking the first time since 2019. The yield spread between the 10-year Indian government bond and the 10-year US Treasury note stood at 3.14 per cent on August 8 - the narrowest in over a decade.
India's foreign exchange reserves declined by $2.599 billion to $293.11 billion in the week ended January 3 on account of a fall in foreign currency assets, RBI said.
Embedded redemption premium and 36 per cent depreciation in five years will realise forex losses worth Rs 67.2 billion.
The country's foreign exchange reserves jumped by a massive $7.779 billion to touch a lifetime high of $568.494 billion in the week ended November 6, RBI data showed on Friday. In the previous week ended October 30, the reserves had increased by $183 million to $560.715 billion. In the reporting week, the jump in reserves was mainly on account of an increase in foreign current assets (FCAs), a major component of the overall reserves.
India's rupee woes seem to have worked in favour of non-resident Indians (NRIs). Last week, the Reserve Bank of India increased the cap on foreign currency non-resident (FCNR) and non-resident external (NRE) interest rates.
Foreign exchange reserves have hit a fresh high.
Global rating agency Moody's Investor Services in its latest report said the strong fundamentals, combined with upturn in savings and investment as well as rising rate of potential growth, supports the Indian government's foreign currency sovereign medium investment grade (Baa3) bond rating and local currency speculative grade (Ba2) bond rating.
Conversely a rate hike may have positive effects if it triggers currency appreciation.
The country's gold reserves remained unchanged at $19.377 billion.
In the previous reporting week, the reserves had surged by $954.6 million to $294.36 billion.
Global agency Fitch Ratings on Tuesday retained India's long-term foreign and local currency ratings at the speculative grade, saying that while the country's external account had improved, local public finances had deteriorated.
Continuing its downward trend for the fifth consecutive week, the foreign exchange reserves plunged $2.754 billion to $311.427 billion in the week to October 3, led by a major fall in non-US currency assets, according to data released by the RBI.
The singer was detained at New Delhi Indira Gandhi International airport on Sunday by the Directorate of Revenue Intelligence officials after he and two of his troupe members were caught allegedly carrying $1.24 lakh (about Rs 60 lakh) in undeclared foreign currency.
The foreign currency assets increased by $1.808 billion to stand at $224.870 billion as against $223.062 billion in the previous week, the Reserve Bank data stated.
Breaking the streak of continuous fall in outstanding amounts, non-resident Indian (NRI) deposits rose for the first time in the financial year to $134.54 billion in October 2022. The figure was $133.67 billion in September. Reserve Bank of India (RBI) data showed that NRI deposits were in shrinking mode for the first six months of FY23. They fell to $133.67 billion in September from $139 billion in March.
Pakistani singer Rahat Fatah Ali Khan, who was briefly detained in India for possessing foreign currency, today said he will visit the country again if "respectfully" invited, even as he admitted guilt and claimed he was 'unaware' of Indian custom laws.
Trading in currency futures will soon become a reality for the retail investor. With the Reserve Bank of India and the Securities and Exchange Board of India issuing trading norms, exchanges are readying themselves to launch this product in the next few weeks.
The total reserves had gone up by $982 million in the previous reporting week.
The apex bank held 586.44 tonne of gold as on September 30, of which 294.14 tonne are held overseas in safe custody with the Bank of England and the Bank for International Settlements, while the remaining gold is held domestically
