A day after plunging below the psychological 72-level in over two months, the domestic currency opened on a positive note. As forex market participants weighed a range of macroeconomic factors posing challenges, the Indian currency turned volatile traded in the range of 71.85 to 72.24 to the US dollar.
About 6 trillion yuan of cross-border yuan payment was for securities investment, thanks to China's accelerated opening of its capital markets, Huo Yingli, director of macroprudential policy bureau at the People's Bank of China told a conference in Shanghai.
On technical charts, USD-INR October futures has given an upward break of descending channel and right now trading with rising channel indicating short term uptrend.
The dollar slid to two-week lows on Thursday, with safe-haven demand for the currency waning.
USD/INR is likely to trade in the range of 71.1 to 72 in an upcoming week and traders can form short strangle and go short in 72 CE and 71 PE at 0.065 and 0.0875 respectively of 6th Sep contract to gain the Theta.
With US markets shut for a holiday on September 2, though, investors remained on the sidelines while looking to see what expansionary policies the European Central Bank and the US Federal Reserve could unveil this month.
The level of 72.90 is a crucial resistance for the USD/INR pair, break of which could push it to a new all-time high.
Sakshi Batra does 3-Point Analysis of the rupee’s fall and how investors can benefit from this downslide of the Indian currency.
He feels countries across the globe would look to weaken their currencies to boost growth as it makes exports cheaper
The Usha Thorat committee on the subject stops short of suggesting capital account convertibility.
The reserves had touched a life-time high of $430.376 billion in the week to July 19, 2019.
Tracking the movement of gold, silver also soared Rs 1,000 to 43,100 per kg on the back of robust demand from industrial units and coin makers.
Traders can form a “Short Strangle” in the currency pair and go short on July 29's 69.25 Call Option as well as 68.5 Put Option at 0.05 each to gain the premium through theta decay
Traders can go short in USD/INR currency futures at 69.29 and on any bounce till 69.40 for the target of 68.5 and 68.1
Forex reserves are close to a lifetime high, which had increased by $1.87 billion to $423.5 billion, that might not let the Indian Rupee to depreciate beyond 70.7 level.
The circular on operational guidelines for the new forex platform for retail participants shall be issued by June-end, RBI said
US' decision to remove India from its currency watch list should give an advantage against China and help in increasing bilateral trade with the US.
Recently, ICEX received SEBI’s approval for using the MSE’s clearing corporation subsidiary -- Metropolitan Clearing Corporation of India. To complicate matters for MSE, the regulator has ordered a forensic audit of the exchange
Financial conditions in international markets are more accommodative than in 2018.
Amid the uncertainty of a hard Brexit the clock is running towards the new Brexit Day. Till the deadline date there are an array options ahead for UK which is likely to create high volatility for pound.
The market today is very different from what it was in 2008, when currency derivatives created mayhem
The non-availability of surplus savings in China will affect the demand for assets.
Sakshi Batra does a 3 point analysis what this development along with progress in other key event risks means for world markets.
This comes after the RBI announced in November 2018 that there was more currency in the system than before PM Narendra Modi's demonetisation announcement in 2016
Sterling was hit by a storm named “Brexit” which they self-induced it in the year 2016. During that year pound lost almost 20 percent of its value against most of its trading partners. 2018 was equally bad for sterling as it lost nearly 6 percent of its value against the US dollar.