Page 2 - Exchange Rates

RBI allows settlement in rupee to settle trade with Russia, Sri Lanka

Exchange rate of two trading partners may be market determined, says central bank

RBI fighting on several fronts to slow rupee's decline to fresh records

The rupee closed down 0.3% to 78.97 a dollar on Wednesday, extending this year's losses to 5.9%. RBI's stated stance is that it intervenes to curb currency volatility

Banks should be more liberal on issues like exchange rates: Goyal

Union Commerce Minister Piyush Goyal on Thursday asked bankers to be "more liberal" on aspects like exchange rates while serving the exporters segment.

Rupee gains 10 paise to end at 73.85, rises for second day in a row

Meanwhile, market sentiments are hurt on concern that rising Covid-19 cases in India and lockdown restriction in some states may hurt economic recovery.

Rupee extends gains for 4th day; rises 29 paise to 74.07 against dollar

This comes amid a positive trend in domestic equities.

Rupee recovers by 28 paise on weak dollar; ends 4-day losing run

This came on the back of weakness in the greenback and positive domestic equities.

Rupee drops by 52 paise to 74.87 against US dollar amid lockdown fears

The rupee plunged by 52 paise to close at 74.87 (provisional) against the US dollar on Monday amid a lacklustre trend in the domestic equities as investors fretted over the prospects of lockdown

Rupee zooms 58 paise to settle at 74.35 against US dollar amid equity gains

Improving risk appetite also helped

Rupee gains 12 paise to close at 74.93 against US dollar amid equity gains

Easing crude oil prices helped too

How RBI's currency operations are spiking forward premia across tenures

From about 3.5 per cent at the start of December to 6 per cent now, three-month forwards rates are most affected

The case for fixed exchange rates

Once the US dollar replaces the SDR as the single reserve currency, the dollar could qualify to be a common currency for a select number of countries

Getting exchange rates right

Calculating them more accurately could reduce the risk of misguided economic policies

Volatile exchange rate slows dollar bond issuance by Indian companies

While dollar bond issuance in 2017 was at $13.11 billion, it dropped to $6.09 billion in 2018

Exchange rates, jobs & external vulnerability

Before our political masters talk of a sovereign wealth fund, we need a far better balance between external assets and liabilities