The rupee is expected to remain volatile in the new financial year.
the rupee had closed steady at 67.95 per dollar on Monday.
This election will be remembered for being the first election where the Election Commission failed to take action on gross violations involving the ruling party that repeatedly used religion, communal slurs, lies and undocumented allegations, observes Ramesh Menon.
Rupee down 13 paise to 66.72 against dollar
The rupee depreciated by 19 paise to trade at almost seven-month low of 61.94 against the US currency in early trade today at the Interbank Foreign Exchange on capital outflows amidst the dollar's gain against other currencies overseas.
Rupee ends day stronger against the dollar.
on Monday, the rupee ended lower by 4 paise.
Going by the real effective exchange rate, the rupee is overvalued
Forex dealers said dollar's weakness against other currencies overseas supported the rupee.
A strong currency helps in fighting some of the import-led inflation.
Dollar weakness was a major contributor to the rupee recovery as the skittish investors continued to lighten their long positions.
Traders said appreciating rupee against the American currency made imports of dollar denominated precious metal cheaper, which mainly kept pressure on bullion prices.
Persistent foreign capital inflows also boosted sentiment.
The rupee had lost 10 paise to close at 21-month low of 64.26 against the greenback in Tuesday's trade.
Forex dealers said rebound in domestic stock markets also helped the rupee strengthen against the dollar.
To provide exporters/importers greater flexibility in risk management, RBI enhanced the limit available to exporters to 50 per cent
Abhishek, Head or Klassen? Whose batting caught your fancy last night?
The dollar firmed up against some global currencies.
Continuing its range-bound movement for the fourth session, the rupee today closed up by two paise at 59.25 ahead of industrial output and retail inflation data.
Traders said subdued demand from jewellers and retailers at prevailing levels and a weak global trend led to fall in gold and silver prices.
Indian corporate are fast tapping the international bonds market to raise funds for their operational expenses even as they reduce their presence in the rupee bond market. As bonds are costlier for companies and investors are more sceptical than the banks, chief financial officers say they are looking at other avenues for raising funds in the coming months as dollar bond rates are lower in the range of 100 to 250 basis points. "For corporate with reasonable credit quality, the Indian bond market has become less of an option from a cost point of view. "In addition, conditions imposed in the Indian bond market by investors post Franklin episode have also become very onerous," said Prabal Banerjee, president-finance of Bajaj group. "Hence very few corporate are looking at the local bond market for resource mobilisation, since both, bank loans and the overseas bond markets are much more attractive," he said.
The rupee fell to more than one-month low of 65.75 against the US dollar on Thursday.
The value and volume of banknotes in circulation increased by 7.8 per cent and 4.4 per cent, respectively, during 2022-23 as compared with 9.9 per cent and 5 per cent, respectively, in 2021-22, revealed the RBI annual report released on Tuesday. In value terms, the share of Rs 500 and Rs 2,000 banknotes together accounted for 87.9 per cent of the total value of banknotes in circulation as on March 31, 2023, as compared to 87.1 per cent a year ago. The Reserve Bank has announced withdrawal of Rs 2,000 notes, and holders of the highest value currency have been given time till September 30 to exchange or deposit them.
In overseas trade, the American currency traded lower against the yen and the euro in an Asian session as well as modest profit-taking after recent sharp gains
The Indian unit opened sharply higher at 64.80 as against Wednesday's closing level of 65.12.
The petition came up for hearing before a bench of Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula which granted time to the petitioners' counsel to place certain judgments on record.
Domestic equity markets opened with losses which capped the rupee gains.
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.
In the currency markets, the rupee lost another 10 paise to close at 1-week low of 63.54 against the US dollar
The rupee ended marginally higher by two paise at 62.24 against the dollar on Wednesday.
The rupee extended gains for the second straight session against the US currency by firming up 21 paise to close at 64.82 a dollar.
The currency lost six paise on sustained dollar demand from importers.
Since most Indian firms have kept their forex exposure unhedged, credit profile of companies in the highly sensitive sectors such as oil & gas, metal & mining, airlines could weaken substantially, says Anup Roy.
Ending a four-day upmove, the rupee on Tuesday retreated four paise from its 11-month high levels to close at 58.63 against the dollar on fresh demand for the US currency from importers, amid some profit-booking in stocks.
Dollar gained against major currencies overseas.
TCS is expected to report a 5 per cent QoQ (USD) growth in revenues, highest in our coverage, while Wipro's IT Services revenue growth could be closer to 1.1 per cent QoQ (USD terms)."
In cross-currency trades, the rupee recovered sharply against the pound sterling to finish at 93.13.
There's sustained demand for the American currency from importers and banks
The domestic unit hovered in a range of 66.45 and 66.61 per dollar during the day.
The ever-astute Ravi Matthai, Director of Indian Institute of Management, Ahmedabad in 1971, offered me a basic salary of Rs 1,000 per month on my return from the United States. I doubt if IIMA could hire a faculty member at Rs 55,000 per month today! points out Dr Shreekant Sambrani.
