Fuel prices in the country have increased to record levels in many cities. The domestic equity indices opened in the green on Friday.
The rise in Indian currency is amid the easing food prices and continued selling of the greenback by banks and exporters.
The rupee retreated from a near two-week high and ended lower by 4 paise at Suspected intervention by the Reserve Bank of India along with losses in the dollar overseas stopped the rupee from falling below the 72 level. The home currency, however, managed to survive the initial sharp volatility and uneasy momentum.
Overall, forex market sentiment turned highly fragile after data showed inflation based on wholesale prices shot up to more than four-year Rise of dollar to rupee of 5. The rupee is still more than 12 per cent down against the dollar so far this year, making it the worst performing Asian currency.
Also, weekend data released by the CSO showed retail inflation spiked to a five-month high of 5 per cent in June, while industrial production growth slipped to a seven-month low of 3.
The reversal of dollar price in the interbank market was surprising since the State Bank of Pakistan SBP had adjusted exchange rate to protect the rupee from over valuation. Key things to know about the rupee trade on Friday: However, the open market witnessed a high degree of exploitation by the exchange companies as they bought dollar as low as Rs but sold in the range of Rs This sharp fall in the exchange rate was killing for the overseas Pakistanis while those who keep their savings in dollars had to pay heavy cost.
This margin of profit never witnessed before. The NSE barometer Nifty50 also opened above the crucial 11, level. Published in Dawn, July 31st, On the energy front, crude prices tumbled nearly 2 per cent as concerns about supply disruptions eased and Libyan ports reopened while traders eyed potential supply increases by Russia and other oil producers.
High crude oil prices continue to fuel worries on the current account deficit front. However, the greenback has lost over 11 per cent in the kerb market since the general elections held on July The US dollar was traded as low as Rs in the interbank market while some said the banks bought at Rs during the day.
He admitted that some currency dealers were buying dollars even lower than Rs A combination of declining domestic macro stability and growing prospects of interest rate hike largely weighed on trade during the day.
The surge was due to steep fall in crude prices and a strong rally in equity markets on Thursday. The common people complained that most of the currency dealers were not ready to buy dollars as they had not cash but they were ready to buy at the lowest rate that was in the range of Rs This has now reduced the possibility of an interest rate cut by the Reserve Bank of India RBI in its upcoming monetary policy review.
Retail inflation accelerated to a five-month high of 5 per cent in June, from 4. According to forex dealers, a higher opening in the domestic equity indices and sustained selling of the American currency by exporters as well as banks led to a rise in Indian rupee.
The exchange companies were making huge profits with this wild depreciation of dollars.The central bank devalued the rupee by per cent on June 11 and on July 16 again adjusted it by per cent bringing down the local currency to Rs per dollar saying this movement in the.
Alas, the dollar now fetches less than 40 rupees (see left-hand chart). India's currency has strengthened by about 15% against the greenback in.
Mumbai: Non-resident Indians are betting big on the rupee’s rise against the dollar. Non- resident rupee deposits have risen by over 15 per cent in the past year at a time when dollar deposits contracted 20 per cent.
These could be a durable source of reserves, a cushion against sudden outflows.
MUMBAI: The rupee retreated from a near two-week high and ended lower by 4 paise at against the US currency, snapping a three-session recovery trend due to renewed dollar demand.
A combination of declining domestic macro stability and growing prospects of interest rate hike largely weighed on. Only in recent times, this change in rupee is much more and it has happened due to stock market rise and fall, currency volatility of dollar against yen and other major currencies, global trade (along with the rise of yuan) and deficits and the recessionary trends along with financial crises observed in the last 9 years.
Rising for the third straight day, the rupee on Friday strengthened by 23 paise to open at against the US dollar in the early trade, reported news.Download