“The rupee has depreciated significantly against the US dollar. Since we maintain less than 5% profit margin for all our hardware products, we have no option other than to increase prices,” Manu Jain, India head at Xiaomi, India’s leading handset maker, said in a note to customers.
The number of COVID-19 cases climbed to 1,071 in India on Monday.
Gains in equities and lower crude oil prices, however, restricted the rupee from venturing into the negative territory.
Analysts said the NSE barometer needs to respect the support of 8,244, else the downside may resume.
Analysts on Mint Street are speculating that the currency may head towards 78 kind of level.
When you invested in a mutual fund scheme, you would have earmarked each of your mutual fund schemes to specific financial goals. For example, a retirement that is twenty years away or a higher education fund for a child that is eight years away.
On the daily chart, the index formed a bearish candle with a lower wick. This suggests that the intraday recovery was sold into.
Ongoing global risk-off sentiment and steep monetary easing will pressure the rupee weaker.
The rupee, which opened on a positive note at 75.90, settled for the day with gains of 78 paise at 75.16 against the American currency.
Number of coronavirus cases in India is nearing 1,000, evoking fears of community transmission.
The rupee which opened on a positive note at 75.90, gained further momentum and touched a high of 75.10 against the US dollar, registering a rise of 84 paise over its previous closing.
Banks have been exempted from a 21-day lockdown that began this week.
The funding signals hope for an industry that floundered in the last two years amid the ban, during which time several exchanges had to shut up shop. Liquidity fell drastically and it became challenging to operate the business.
The domestic unit depreciated nearly 80 paise to record low of 75.02 per dollar against the previous close of 74.23.
Stock futures rollovers stood at 90 per cent, which were in line with an average rollovers of last three F&O series.
Forex traders said the rupee which started the day on a positive note, witnessed heavy volatility.
The fall in domestic equities has added extra pressure on our currency.
Forex traders said the fall in the domestic unit was in line with other Asian peers amid mounting fears of a coronavirus-led economic slowdown.
These funds would be available for 6 months. India's forex reserve is at record $487.24 billion.
The rupee has weakened 3 per cent since the beginning of March.
The rupee on Tuesday opened 12 paise higher at 74.15 against the dollar following a steep fall in crude oil prices.
The domestic unit finally finished at 74.26, down 2 paise over its previous close.
In the current month so far, FPIs have pulled out a whopping Rs 33,163 crore (USD 4.46 billion) from Indian capital markets.
RBI said it will take all necessary measures to ensure that money, debt and forex markets remain adequately liquid and stable, and continue to function normally.
Forex traders said the Indian rupee which started the day on a positive note, witnessed heavy volatility amid fears that the rate cut by the Reserve Bank would not be sufficient to boost market sentiments.
ADB's India rupee bonds have been a "game changer" for local currency operations
The carnage wiped off Rs 14.22 lakh crore of the m-cap of the companies listed on the BSE.
"We are in the process," Prashant Kumar, the administrator, told Reuters.
Industry body CII president Vikram Kirloskar's remarks come against the backdrop of mounting concerns that companies, including in India, could resort to retrenchment due to sluggish demand and various restrictions in place to curb spreading of the coronavirus infection.
Fundamentals are also pointing towards weakness in the rupee.
Re is the worst performer in emerging Asia this quarter and that’s because RBI is mopping up dollar, analysts say.
In the currency markets, the Indian rupee fell to a record low of 74.5075 (intra-day) against the US dollar.
The Indian unit had clocked its first gain after falling for five sessions on Thursday.
The rebound follows largest single-day drop on Wall Street since Black Friday in 1987.
What’s even more remarkable is that China, the epicentre of the viral outbreak that’s sinking financial assets from Jakarta to Johannesburg, fared better.
At the interbank foreign exchange market, the local currency opened at 73.99. During the day, it moved northward, though briefly, to touch a high of 73.85.
The domestic unit had settled at 71.31 against US dollar on Thursday.
The rupee consolidated in a narrow range as gains were restricted by sustained foreign fund outflows and robust selling in domestic equities.
The 10-year government bond yield was at 6.34 per cent in morning trade.
Short bets on the Thai baht also rose, after Bank of Thailand vowed to act following the Fed’s cut.
Silver prices also fell by Rs 80 to Rs 49,990 per kg from Rs 50,070 per kg on Monday.
The move will benefit Indian bourses at IFSCs by bringing rupee trading to the country, as such derivative contracts are presently dominated by exchanges in Dubai and Singapore.
Gold prices soared Rs 953 to Rs 44,472 per 10 gram in the national capital.
Asian markets traded weak this morning, but Nifty futures in Singapore signaled the possibility of a positive start on Dalal Street.
The 10-year government bond yield was at 6.39 per cent.
At the interbank foreign exchange market, the local currency opened on a positive note at 71.36.
Nifty saw its biggest-ever fall in history, cracking below the 9,600 mark in a brisk selloff.
Forex traders further said easing crude oil prices supported the local unit.
The central bank Monday issued directions for currency derivatives in any currency pair involving the Indian Rupee in international financial centres.
At the interbank forex market, the local currency opened at 71.76 to the US dollar.
At the interbank foreign exchange market, the local currency opened at 71.75.
Short positions on the Singapore dollar were at their highest since late August 2019.
The acceptance of Indian currency is good news for Indian tourists as earlier they lost a sizeable amount due to exchange rates.
Silver prices also dropped Rs 179 to Rs 46,881 per kg from Rs 47,060 per kg on Tuesday.
The dollar index rose 0.02% to 99.14.
Industrial production and retail inflation data is due on Wednesday, while WPI inflation numbers will be released on Friday.
Chief Economic Adviser K V Subramanian said the Indian economy has bottomed out and it will see an uptick from here on.
At the interbank foreign exchange market, the local currency opened at 71.25.
The Indian rupee on Tuesday had closed at 70.87 against the dollar.
Here’s breaking down the pre-market actions.
The Indian rupee on Thursday had closed at 70.93 against the dollar.
IFSC has the potential to become a centre of international finance and high end data processing, the minister added. It has 19 insurance entities and 40 banking entities. IFSC has also provided for setting up of precious metals testing laboratories and refining facilities.
The rupee on Tuesday had closed at 70.87 against the US dollar.
In its RTI response provided on Wednesday to Commodore Lokesh Batra (retd), who sought to know the latest data on outstanding bills of Air India, the carrier said as on November 30, 2019, Rs 822 crore were pending towards VVIP charter flights. It also said an additional Rs 9.67 crore towards evacuation operations and Rs 12.65 crore towards ferrying foreign dignitaries were also pending.
Rupee may strengthen to 67 per dollar by end-June, a level last seen in the same month last year, said Qi Gao.
Forex traders said rupee consolidated in a narrow range as market participants are assessing the economic implications of the coronavirus outbreak and awaiting cues from the Union Budget.
Here’s breaking down the pre-market actions.
For the last nine months, the economics statistics coming out of Asia have pointed out to a meaningful slowdown in economic activity, says the author of Gloom, Boom & Doom Report
The domestic unit had settled at 71.30 against the American currency on Monday.
The Indian rupee on Tuesday had closed at 71.36 against the dollar.
Since the leadership of the RBI has changed we have seen more monetary easing, says Wood.
The biggest shockwave was a rise in crude oil prices as Brent crude shot up by more than $3 per barrel.
Gold prices fell by Rs 80 to Rs 40,554 per 10 gram
The precious metal had closed at Rs 41,400 per 10 gram on Wednesday.
At the foreign bank exchange, the domestic unit opened significantly lower at 72.05 per dollar.
Silver also jumped by Rs 855 to Rs 49,530 per kg from Rs 48,675 per kg on Tuesday.
The rupee opened on a positive note at 71.73 against the US currency.
At the interbank foreign exchange market, the local currency opened at 71.24.
“There is a line-up of inflows from external commercial borrowings and share sale expectations, which will keep the rupee under check despite global uncertainties and local deteriorating macros,” said Ashhish Vaidya, treasurer at DBS Bank India.
During the week, the domestic unit lost 14 paise.
Amid all these negatives, Nifty futures in Singapore hinted at a rebound for domestic stocks.
On Wednesday, the local unit had settled at Rs 70.97 against the greenback.
The analysis of the trade data till November, 2019 during the current fiscal pointed towards quite a few months when the rupee saw a depreciation but exports did not go up; rather a declining trend was witnessed. For instance, while depreciating rupee for April, May, June, July and August should have helped engineering exports to grow, reverse happened in this period.
The domestic currency has lost 24 paise in the last three trading sessions.
The new framework is valid from November 14, 2019 to November 13, 2022.
Gold rose by 2 per cent to record levels amid a rush to invest in safe-haven assets.
Forex traders said, the domestic unit is trading in a narrow range ahead of the RBI monetary policy decision on Thursday.
The Indian rupee on Friday had closed at 71.74 against the US dollar.
The local unit finally settled at 70.97, down 28 paise over its previous closing.
On a weekly basis, the rupee gained 86 paise or 1.19 per cent.
Weaker greenback overseas and easing crude oil prices helped the rupee restrict its losses to some extent.
A strengthening domestic equity market supported the rupee, dealers said.
Rubber imports fell 18 per cent year-on year in April-October 2019, according to Rubber Board data.
Forex traders said the drop in the rupee was largely due to a spurt in crude oil prices following rising tensions in the Middle East and North Africa.
Nifty on Monday formed a bearish candle on the daily chart for the third straight session.
Over 700 companies will announce their financial results for the December quarter this week.
Forex traders said forex outflows and rising crude oil prices also weighed on the domestic currency.
On Tuesday, the local unit had settled at 71.71 against the greenback.
Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service