Page 4 - Forex Market

Foreign exchange reserves fall to $525 billion, lowest since July 2020

So far in 2022, the Indian currency has weakened 9.9 per cent against the US dollar

The overvalued rupee: Managing exchange rate volatility and forex reserves

Since the 1950s, a cocktail of partisan domestic interests has resulted in the Reserve Bank of India and the Indian government favouring an overvalued rupee

RBI intervenes to claw rupee back from fresh intraday low vs dollar

Central bank may have sold around $1 billion in Fx market on Thursday

Rupee declines 0.8%, closes at fresh all-time low of 83 vs US dollar

Analysts say RBI is allowing the depreciation amid wider CAD and higher US interest rates

As RBI spreads out Fx interventions, forward premium hits 11-year lows

The central bank looks to protect headline reserves, deter offshore/onshore arbitrage on Rs with buy-sell swaps in forex market

Flows into NRIs deposits moderate to $1.43 billion in Apr-Aug period

Outstanding NRI deposits declined to $134.68 billion at the end of August 2022 from $141.52 billion a year ago

Rupee depreciates 14 paise to 82.35 against US dollar in early trade

The rupee depreciated 14 paise to 82.35 against the US dollar in the morning trade on Wednesday amid the strengthening of the American currency and sustained foreign fund outflows. Moreover, risk aversion sentiment among investors and weak Asian and emerging market currencies weighed on the local unit. At the interbank foreign exchange, the domestic unit opened at 82.32 against the dollar, then lost further ground to 82.35, registering a loss of 14 paise over its previous close. In a highly volatile session, the local unit also touched 82.28 against the American currency in initial deals. On Tuesday, the rupee rebounded from its all-time low to close 19 paise higher at 82.21 against the US dollar. "Most Asian and emerging market peers were weaker this Wednesday and will weigh on sentiments," Sriram Iyer, Senior Research Analyst at Reliance Securities said, adding that investors will remain cautious ahead of the release of key domestic macro data. India's inflation, IIP and ...

RBI issues consolidated guidelines on unhedged foreign currency exposure

The Reserve Bank on Tuesday modified and consolidated guidelines for banks on unhedged foreign currency exposures of any entity to prevent losses due to heightened volatility in the forex market. The RBI has, from time to time, issued several guidelines, instructions and directives to the banks on Unhedged Foreign Currency Exposure (UFCE) of the entities, which have borrowed from banks. In the wake of a bank seeking clarification on various aspects related to UFCE, the RBI said a comprehensive review of the extant guidelines has been undertaken and all the existing instructions on the subject have been consolidated. These instructions shall come into force from January 1, 2023, it said in a circular. In an explanatory note, the RBI said unhedged foreign currency exposure of any entity is an area of concern not only for the individual entity but also for the entire financial system. Entities which do not hedge their foreign currency exposure can incur significant losses during a pe

Rupee depreciates 38 paise to 81.78 against US dollar in early trade

The rupee depreciated 38 paise to 81.78 against the US dollar in early trade on Monday, tracking a muted trend in domestic equities and risk-off sentiment among investors. Besides, surging crude prices in the international market impacted the domestic unit, traders said. At the interbank foreign exchange, the local currency opened weak at 81.65 against the dollar, then lost further ground to quote at 81.78, registering a loss of 38 paise over its previous close. The rupee settled 33 paise higher at 81.40 against the dollar on Friday. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.04 per cent to 112.08. Brent crude futures, the global oil benchmark, surged 2.77 per cent to USD 87.50 per barrel. In the domestic equity market, the 30-share BSE Sensex was trading 66.60 points or 0.12 per cent lower at 57,360.32, and the broader NSE Nifty fell 12.90 points or 0.08 per cent to 17,081.45. After infusing funds in the las

RBI's rate hike to increase EMIs; equity, forex markets give thumbs up

The Reserve Bank's decision on Friday to raise the key interest rate by half a percentage point will increase the EMIs for home, auto and other loans, though the hawkish move was cheered by both equity and forex markets, with the benchmark BSE Sensex rising more than 1,000 points and the rupee appreciating by 33 paise against the US dollar. Meanwhile, the government announced a steep 40 per cent increase in price of natural gas which will eventually make CNG and piped gas dearer for consumers. Within hours of the RBI increasing the benchmark lending rate (repo) to a three-year high of 5.9 per cent, India's banking sector giant SBI and largest mortgage lender HDFC raised their loan rates by 50 basis points. Other banks and NBFCs are likely to follow soon. Since May, the central bank has raised the repo rate by 190 basis points in its fight against elevated inflation. In view of the deteriorating global situation and domestic inflation, the RBI has lowered its GDP growth projection f

Analysts see Rupee hitting 85 levels; Fibonacci charts, too, show weakness

As per the weekly Fibonacci chart, the Rupee can depreciate to 82 - 82.20 - 82.40 during the week. However, in case the currency sustains below 81.55-level a corrective move to 80.50 seems possible.

Rupee falls to fresh low on relentless strength in dollar after Fed hike

Forex traders await cues on RBI's intervention strategy post the recent slump in rupee

Yen soars after Japan intervenes in forex market for first time since 1998

The Japanese yen soared across the board on Thursday after monetary authorities intervened in the foreign exchange market to boost the battered currency

Rupee hits new low vs USD on hawkish Fed; poll shows currency at 81 by Dec

Suffers steepest one-day fall since Ukraine war; poll shows rupee at 81 by Dec

Rupee sheds 0.3% as US dollar soars ahead of Fed's policy statement

Putin's call for partial mobilisation hits risk appetite in currency market

Rupee climbs to 5-week high on dollar inflows, breaches key level

The rupee closed at 79.1475 per US dollar, compared with the previous close of 79.5225, notching up its best session this month

Dwindling foreign exchange reserves spells risk for EM currencies

Thailand saw the biggest drop in reserves as a percentage of the gross domestic product, followed by Malaysia and India, according to data compiled by Bloomberg

India's foreign exchange reserves fall to lowest in 23 months

RBI's defence of the rupee cited as reason

RBI issues 'Alert List' on entities not authorised to deal in forex trading

The Reserve Bank on Wednesday came out with an 'Alert List' containing the names of 34 entities, including OctaFX, Alpari, HotForex, and Olymp Trade, that are not authorised to deal in forex and operate electronic trading platforms in the country. In a statement, the Reserve Bank of India (RBI) said that resident persons can undertake forex transactions only with authorised persons and for permitted purposes, in terms of the FEMA. Resident persons undertaking forex transactions for purposes other than those permitted under the FEMA or on electronic trading platforms (ETPs) not authorised by the RBI shall render themselves liable for legal action under the FEMA The central bank said it has been receiving references seeking clarification on the authorisation status of some ETPs. "It has, therefore, been decided to place on the RBI website an 'Alert List' of entities which are neither authorised to deal in forex under the Foreign Exchange Management Act, 1999 (FEMA) nor authorised to

Rupee held its own despite sharp depreciation in other currencies: RBI Guv

Das said that the Indian rupee has "held its own" and moved in an "orderly manner at a time of sharp depreciation in other currencies"