The fall in the rupee will lead to imported inflation, which will take its toll on the economy
The other 62 expect status quo after retail inflation jumped above the RBI’s tolerance limit for the first time in over a year and as the rupee plumbs record lows on a regular basis due to portfolio outflows and the dollar’s post-U.S. election rally.
USDINR is expected to remain sideways within our range. A Double Butterfly (Asymmetrical) trade to capitalise.
Forex traders said a fall in crude oil and a rally in domestic equities boosted investor sentiments while foreign fund outflows capped the rupee gains.
There has not been a single issue this fiscal by Indian corporates and banks against $13.3 billion raised by them in FY22. Issuances may remain muted near term and many issuers may refinance earlier dollar borrowings with onshore debt or buy them back in the secondary market, experts said
While there is no need today for expensive schemes such as the FCNR (B) swap window, it is always prudent to review contingency plans
As INR continue to witness fresh lows, the implied volatilities remain low as RBI remains vigilant on either direction, of course with the underlying weakening trend
The rupee breached a psychologically important level of 80 per dollar on July 19 for the first time. The unit has depreciated nearly 6 percent in FY23 so far
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If India imports a major share of the energy it consumes and energy prices across the world are skyrocketing, then the Indian economic system must come to live with it and build high import costs into its pricing
In trade weighted inflation adjusted REER terms, the Rupee was close to its fair value in March 2022 against a basket of 40 currencies. However, intensification of depreciation pressure on the Chinese Yuan would weigh on the Rupee and other Asian currencies to maintain competitiveness. A sharp depreciation in Yuan remains a key downside risk to the Rupee’s exchange rate
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RBI intervention, FDI inflows and foreign currency borrowings have helped stabilise the rupee
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Continued foreign investment flows, improving economic fundamentals to support rupee
The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 71.8129 and for the euro at 83.977
Constant currency refers to a fixed exchange rate that eliminates fluctuations when calculating financial performance figures
In a press statement, IOC said: "The current level of international product prices of petrol and diesel and the rupee-dollar exchange rate warrant a decrease in prices, the impact of which is being passed on to the consumers with this price revision."
After touching the 100 level, the US dollar has retraced back to about 97. Barclays Barclays' head of forex for Asia-Pacific Mitul Kotecha said in light of the Fed's dovish stance, it may continue to take a pause in the very near term but maintained its medium term outlook to be strong.
Jai Bala feels most stocks having the name Bharat would perform well. So, he is upbeat on BEML, BHEL and L&T.
Rostow Ravanan of Mindtree sees maximum opportunities coming from the US. Sounding extremely confident on the days to come, he says customer confidence is at its highest in the past 15 years.
The rupee can reach 57-58 levels though the RBI may try to stem the volatility by starting to build reserves at 60.