Foreign exchange reserves have risen by $50 billion since the beginning of the year, despite a net ~ $14 billion outflow from domestic equity and debt markets in the same period.
We follow a tactical asset allocation approach in which we are not exposed to a single market or a single currency or a single asset we diversify to the best opportunities available at that point in time.
India is a major beneficiary of improved global liquidity on lower crude prices. Cheaper crude is a big positive for the Indian economy in such trying times.
Profit can be booked in this strategy if the currency pair trades above 76.85 anytime during the week.
Looking at the overall market structure, it is evident that sideways movement is likely to continue in the currency pair.
When rate cuts fail to bring down the entire yield curve the policy decision needs to front-load ammunition to achieve the desired goals. Monetary policy has to shift to principles of inclusion and not selectivity.
Sri Lankan President Gotabaya Rajapaksa has requested India to provide a special USD 1.1 billion currency swap facility to boost the country's draining foreign exchange reserves
Part of the fiscal deficit should be monetized as a one-off measure
During the session, the rupee witnessed high volatility and touched a high of 76.43 and a low of 76.68 against the US dollar.
As long as further new cases are not reported the sentiment should be stable. This could be a positive for the rupee.
Earlier instances show that the correction from such emergencies is sharp and short, but this time the virus seems much more contagious and has spread rapidly across the globe
Japan's currency, often sought as a safe-haven in times of uncertainty, rose to the highest in almost three weeks versus the dollar, while the Chinese yuan fell to its lowest since January 8
The annual Traders Carnival is being held in Coimbatore and will capture the changing market dynamics. Live trading, expiry day trading, currency and commodity traders will be showcasing their skills.
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.