Bangladesh is in turmoil, which is not good news for India, which shares a porous 4000 km border with it. There is a danger of fundamentalism growing there, and India has to move in to reset its ties with the new dispensation before China and Pakistan make capital out of it, alerts Ramesh Menon.
The fall in reserves was due to a sharp fall in foreign currency assets.
Dollar's weakness against some other currencies overseas supported the rupee.
The local currency had gained 7 paise to close at 66.57 in Monday's trade.
A forensic probe has been ordered into alleged irregularities by the department of financial services.
India should become a middle-income country and then push to make INR (rupee) a hard currency, and till then, it must promote the settlement of global trade in the local currency, think tank GTRI said on Sunday. Global Trade Research Initiative (GTRI) said that transforming a currency into a hard currency is a complex process that hinges on several pivotal factors. Firstly, economic stability is paramount; a country must exhibit low and stable inflation, consistent growth, and a balanced trade environment.
Overseas investors, as well as other key stakeholders, such as brokers, custodians, and clearing corporations, are yet to iron out critical issues, even as the shift towards a shorter trade settlement cycle approaches new phases. Several industry players said foreign portfolio investors (FPIs) are still facing impediments over the trade confirmation timelines, foreign exchange (forex) bookings, and pre-funding requirements. This could potentially act as a roadblock when it comes to moving entirely to the new T+1 settlement cycle from next year.
India's foreign exchange reserves, now at $100.05 billion, is expected to reach $104 billion by March, but its high growth may slow down due to rising trade deficit, according to the Institute of Economic Growth.
What the reserves offer for now is improved import coverage of about 13 months, almost double the 2013 level of less than seven months. And, ammunition to arrest a rapid rupee slide, says Anup Roy.
The local currency had gained 17 paise to close at three-month high of 66.37 in Wednesday's trade.
Forex dealers said a strong opening in domestic equity markets supported the rupee.
Strength in dollar against some other currencies overseas weighed on the rupee
The rupee had gained 90 paise, or 1.34 per cent.
Forex dealers said a higher opening in the domestic equity market also supported the rupee.
The rupee had dropped by 6 paise to close at 66.65 in Thursday's trade.
India's exports shrank in January for the 14th straight month on continued weak demand from Europe
The fall in total reserves was mainly because of a decline in foreign currency assets worth $4.5 billion, the data showed.
Rising for the fifth straight session, the rupee gained 9 paise at 66.31 against the dollar in early trade on Monday.
Bouts of dollar demand from importers put pressure on the rupee
The rupee rose by 12 paise to close at 79.78 against the US dollar on Monday due to a weak dollar in overseas markets and an improved appetite for riskier assets. Stronger regional currencies also supported the rupee sentiment ahead of the US Fed policy decision on Wednesday. Weak domestic equities and FII outflows, however, capped sharp gains. At the inter-bank forex market, the local unit opened at 79.86 against the greenback and moved in a range of 79.70 to 79.87 in the day trade.
A weakening dollar against other currencies overseas supported the rupee.
Forex dealers said sustained foreign fund flows also aided the trading sentiment in rupee's favour.
The rupee on Thursday recovered by a hefty 60 paise to 53.24 against the US dollar in early trade on the Interbank Foreign Exchange market after the Reserve Bank tightened norms for utilisation of the foreign currency fixed deposit funds to check outflow of forex.
The report also said that the domestic currency was likely to trade weak in the near future.
Dollar's strength against some currencies overseas capped the gains
FIIs pumped in nearly Rs 340 crore in stocks today as perprovisional data on stock exchanges.
Forex dealers said increased demand for the dollar from importers also put pressure on the rupee.
A higher opening in domestic stock market supported the rupee.
Technical analysis can help you understand market trends so that you can make informed investment decisions, says Rupak De, senior technical analyst at LKP Securities.
A higher opening in the domestic stock market buoyed the rupee sentiment
A higher opening in the domestic equity market and a weak dollar against other currencies overseas on a string of disappointing US data last week also supported the gain in the rupee
Weakening of the dollar against other currencies overseas, following disappointing economic data and a higher opening in the domestic equity market, supported the rupee.
Exports rise for 8th month, albeit at lower pace
However, the US dollar's strength against other currencies overseas capped the rupee's gain
The rupee on Monday dropped by 30 paise to 54.72 against the US dollar in late morning trade, due to on fresh demand for the American currency from banks and importers despite a weak global trend.
Fresh demand for dollars from banks and importers in view of firm dollar in the overseas market mainly affected the rupee value against the US unit, a forex dealer said.
Forex dealers said fresh demand for the dollar also put pressure on the rupee.
Selling of dollars by exporters helped the Indian currency appreciate.
Weak dollar in the overseas market also boosted the rupee value against the dollar, a forex dealer said.
