India's forex reserves rose $1.05 billion to $630.61 billion for the week ended January 31, the RBI said on Friday. In the previous reporting week, the overall reserves had increased by $5.57 billion to $629.56 billion.
India's forex reserves increased $5.57 billion to $629.56 billion in the week ended January 24, the Reserve Bank said on Friday. In the previous reporting week, the overall kitty had dropped $1.89 billion to $623.98 billion.
The Rs 250,000-crore (Rs 2.5 trillion) domestic jewellery sector is likely to be hit hard by frequent rises in gold import duty and the sustained depreciation of the rupee against the dollar.
The rupee depreciated by 37 paise to close at 79.62 against the US dollar on Thursday despite sustained foreign capital inflows and a positive trend in equities. At the interbank foreign exchange market, the local currency opened at 79.22 and saw an intra-day high of 79.22 and a low of 79.94 against the American currency. It finally ended at 79.62, down 37 paise over its previous close of 79.25.
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The rated oil and gas companies, Fitch said, have a significant proportion of foreign currency-denominated debt.
The rupee depreciated 7 paise to an all-time low of 80.05 against the US dollar in early trade on Tuesday tracking the strength of the American currency and firm crude oil prices. At the interbank foreign exchange, the rupee opened at 80 against the American dollar, then lost ground to quote at 80.05, registering a fall of 7 paise from the last close. In initial trade, the local unit also touched 79.90 against the American currency.
Sale of dollars directly by the RBI can help but only temporarily for a day or two before it will be back to a volatile market.
Dealers attributed the fall to fresh demand for the US currency from importers.
Stock markets would be driven by global trends and foreign investors' trading activity in the holiday-shortened week, analysts said adding that key equity indices may face volatile trends amid the monthly derivatives expiry on Thursday. This week markets will have just three trading sessions. Equity markets will remain closed on Monday for Holi and on Friday for Good Friday. "This week will be shorter due to market closure on both Monday for Holi and Friday for Good Friday.
The rupee's slide to a two-year low will impact consumer durables and electronics companies, as the import content in their products tends to be high
Jet Airways is imposing $50 surcharge on economy class fare on its Gulf flights.
Foreign investors continue to pull back money from the Indian equity market withdrawing a little over Rs 30,000 crore in the first fortnight of the month amid escalation in global trade tensions. This came following an outflow of Rs 34,574 crore from equities in February and Rs 78,027 crore in January.
Dealers attributed the rupee's fall to persistent demand for the US currency
India's forex reserves dropped by $1.88 billion to $623.98 billion in the week ended January 17, the RBI said on Friday. Earlier, the overall kitty declined by $8.71 billion to $625.87 billion in the week ended January 10, the Reserve Bank of India said.
Hit hard by rupee depreciation, automobile companies including Toyota and General Motors, are keeping options open to increase prices of their vehicles.
Dealers attributed the rupee's fall to increased demand.
Foreign investors continue to pull back money from the Indian equity market, withdrawing Rs 24,753 crore (about $2.8 billion) in the first week of March amid escalating global trade tensions and lacklustre corporate earnings.
At Forex market, the domestic unit commenced lower at 53.95 a dollar from previous close of 53.81and moved in a restricted range of 53.88 and 54.06 before settling at 53.94, showing a fall of 13 paise, or 0.24 per cent.
India's forex reserves dropped by $8.71 billion to $625.87 billion in the week ended January 10, the RBI said on Friday. Earlier, the overall kitty dropped by $5.693 billion to $634.58 billion in the week ended January 3, the Reserve Bank of India said.
Rediff reports on the reasons behind this dramatic shift.
eclined for the third month in a row in January, falling by 2.38 per cent year-on-year to $36.43 billion, while the trade deficit widened to $22.99 billion in the month. Imports rose by 10.28 per cent year-on-year to $59.42 billion in January due to an increase gold shipments, according to the Commerce Ministry data. The trade deficit was $21.94 billion in December and $16.55 billion in January last year.
While information technology companies will benefit, firms with high foreign borrowings or heavy dependence on imports will be hurt.
High frequency indicators, like vehicles sales, air traffic, steel consumption and GST E-way bills, point towards a sequential pickup in momentum of economic activity during the second half of the fiscal 2024-25 and sustain moving forward, RBI Bulletin said on Wednesday. However, a strong dollar, driven by US economic resilience and trade policy pivots, could exacerbate capital outflows from emerging economies, push risk premiums higher, and intensify external vulnerabilities, said an article on 'State of the Economy' published in RBI's February bulletin.
The Indian rupee, which has depreciated 1.1 per cent so far in August, is expected to decline further on the back of a strengthening US dollar and a weakening Chinese yuan, according to a Business Standard poll of analysts. The Indian rupee hit an all-time low recently, closing at 83.15 per dollar. Five of the 10 respondents said the Indian currency might touch 83.5 per dollar in August itself, while others said the worst could be over.
India's forex reserves dropped by $4.11 billion to $640.28 billion during the week ended December 27, the Reserve Bank said on Friday. In the previous reporting week, the overall kitty had dropped by $8.48 billion to $644.39 billion.
India's forex reserves dropped by $5.69 billion to $634.58 billion in the week ended January 3, the Reserve Bank of India said on Friday. In the previous reporting week, the overall kitty had declined by $4.11 billion to $640.28 billion.
'If it doesn't, it will continue with measures to infuse liquidity, signalling a new cycle,' predicts Tamal Bandyopadhyay.
Propelled by strong demand and lower costs, the country's largest airline, InterGlobe Aviation (IndiGo), reported solid operational performance in the 2024-25 (FY25) October-December quarter (Q3). While demand was driven by the festival season, year-end increase, and higher consumer spending, lower fuel and rental costs helped deliver a beat at the operating profit level.
The renminbi is expected to weaken another 2 per cent in six months.
In a report on the rupee's depreciation, S&P said, "Revenue for companies that export and operate overseas would rise, because they would get more rupees for the goods and services they sell."
Since October, FPIs have offloaded Indian equities worth Rs 2.1 trillion.
The government has taken a number of steps to stem the depreciation of rupee including moderation in demand of non-essential imports and enhancing supply of capital flows, Finance Minister P Chidambaram said.
Indian rupee, which earlier this week touched an all-time low, is likely to remain under pressure and may test new levels as a fallout of the US Federal Reserve indicating more interest rate hikes, experts said. The aggressive rate hikes will dampen demand and increase the possibility of a recession in the US. This could accelerate the pace of capital outflows, weaken the rupee and raise the threat of imported inflation.
As they feel that the rupee may depreciate to 43.75 levels over the next six months.
More importantly, this period has seen a fairly major shift in market perceptions -- traders are reconciling to the prospect of medium-term decline in the exchange rate instead of dismissing any episode of rupee depreciation as a transient deviation from a path of continuous appreciation. A combination of local price impulses and these global pressures has pushed up domestic inflation. Wholesale price inflation for the week ended February 23 printed at 5.02 per cent.
'From a retail investor's perspective, therefore, it is essential not to get swayed by the short-term correction in the equity market and macro noise, and stay the course with their long-term financial plans,' notes Ashwin Patni.
Appreciation of the dollar overseas amid a lower opening in the domestic equity market affected the rupee
The rupee has declined by about 9 per cent in the past three months and had touched an all time low of 61.21 to a dollar earlier this week.
Rajan says, this is a time where countries should be focusing on getting the macro stability in order
The information technology (IT) sector in India made the most out of the falling exchange rate of rupee in the last five months of the calendar year 2011, according to a report by CARE Ratings. Other industries that were net gainers in foreign exchange include textiles, two wheelers and commercial vehicles.
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