The Rupee plunged below the 82 mark for the first time against the US dollar on 29 September. By 10 October, the Rupee further slid downhill to 82.75. The currency had been on a fast-paced downslide over the recent months along with its Asian peers. Various factors have contributed to currency instability when the world is staring at a looming economic uncertainty.

War and the crude prices

The hike and volatility in crude prices caused due to the war in <a href="https://www.wionews.com/world/ukraine-conflict-has-pushed-4-million-children-into-poverty-unicef-525952">Ukraine</a> has significantly moved up India’s import costs, thereby creating more demand for the US dollar. The pent-up demand after the COVID-19 crisis has not been met with sufficient supplies. The<a href="https://www.wionews.com/world/will-never-renounce-force-says-xi-jinping-on-taiwan-during-the-party-congress-525795"> zero-Covid strategy in China </a>had greatly subdued its manufacturing potential, leaving the world short of adequate supplies.&nbsp;

The disruption of COVID-19 had lent a big blow to the global supply chains, unsettling global and regional connectivity. The sanctions on Russian crude and natural gas have critically affected many European countries. The supply-side constraints have been the major factor behind the high inflation rates reported by chief economies of the world.&nbsp;

Fears of recession

So far, India has fared better than the US and other western economies. The <a href="https://www.wionews.com/world/uk-pm-liz-truss-economic-plan-was-a-mistake-says-biden-525756">inflation</a> rate in India is hovering around 7 per cent&nbsp;which is still in the manageable spectrum. The US and many European countries consistently report inflation rates of over 8 per cent&nbsp;which is way over the norms of advanced economies.

The continuing hawkish stance of the Federal Reserve is further bolstering fears of recession. The climate of creeping instability is forcing all the money to be parked in safe havens like the US dollar as a hedge against potential risks. Foreign Institutional Investors (FIIs) had been net sellers in the Indian Stock Market during September.&nbsp;

Yuan depreciation in recent months has made Chinese imports much more attractive that further led to the lowering of demand for the Indian Rupee. Aggregately, prevailing economic conditions are causing widening of the Current Account Deficit (CAD) of the country. As per the latest data from RBI, the CAD increased from 1.5 per cent&nbsp;of the GDP in the January-March quarter to 2.8 per cent&nbsp;of the GDP in the April-June quarter.&nbsp;

The Reserve Bank of <a href="https://www.wionews.com/india-news/indian-man-wrongly-detained-at-abu-dhabi-airport-over-mistaken-identity-lands-in-delhi-525936">India</a> (RBI), India’s central bank, sold its Foreign Exchange Reserves (Forex) aggressively from July to prevent the Rupee from crossing the psychological mark of 80. India’s Forex dropped to $537.5 billion by 23 September, the lowest level since August 2020.

The Rupee settlement system 

The RBI for a long time has been deliberating on ways to reduce dependence on the US dollar and tide over <a href="https://www.wionews.com/world/brazil-bolsonaro-lula-face-off-in-first-debate-525954">US</a> sanctions in various parts of the globe. In July, the RBI permitted international trade to be invoiced, denominated, and settled in Indian Rupee. Market forces would determine the rate of exchange of trade. Touted as an early step toward internationalization of the Indian Rupee, it remains to be seen how the step will play out in the long term.

Deputy Governor of the RBI said on 30 September&nbsp;that around five countries have responded positively to its plan to settle international trade in Rupees, but the process involves technicalities at the level of banks and is going to take some time.&nbsp;

If implemented in the long term, the mechanism would reduce the over-dependence on the US dollar and save precious Forex reserves. In the near future, major benefits could be reaped in trade with Russia and Iran, where the US sanctions have made the trade in US dollars almost an impossibility. Countries with an export surplus with India might not be largely enthusiastic straightaway, because they will have no use for excess Rupee unless it has achieved widespread international acceptance.

Inclusion in Global bond indices

India’s efforts to get included in the Global bond indices is another step by the<a href="https://www.wionews.com/world/iran-protests-raisi-accuses-biden-of-inciting-chaos-in-the-country-525946"> government</a> that could alter the currency status-quo. The RBI is working closely with the government to enable international settlement of government securities and incorporation of rupee-denominated bonds in Global bond indices.&nbsp;

Russia’s recent exclusion from the JP Morgan government bond index-emerging markets (GBI-EM) has left the index unbalanced boosting India’s chances of inclusion. Morgan Stanley, a leading brokerage firm said that the inclusion could attract $170 billion to $250 billion to India in foreign inflows over the next decade. The firm also expects the Rupee to appreciate by 2 per cent every year in REER (Real Effective Exchange Rate) terms, in addition to creating a better investment climate.

JP Morgan GBI-EM and FTSE Russell—two Global bond indices have already put India on the watch list for possible inclusion. Major hindrances that need to be removed before inclusion are India’s local bond settlement rules and tax hurdles. In September, GBI-EM deferred inclusion of Indian government bonds till early next year. The government is not yet willing to exempt foreign investors from capital gains tax because it would discriminate against domestic investors.

Pilot launch of India’s digital currency

On 7 October, the RBI released a concept note on the proposed <a href="https://www.wionews.com/world/bitcoin-firm-nydig-laid-off-about-a-third-of-staff-in-september-reports-say-525289">digital</a> Rupee. One of its stated objectives is the improvement in cross-border transactions. India is wary of the rapidly expanding Chinese CDBC (Central bank digital currency) project and fears being left behind if digital Yuan increases its stature as a global currency. India feels it has to set the ball rolling, to gain a fair share of future global transactions, denominated in Rupee. 

Gradual depreciation of the Rupee may be good for boosting India’s exports. Nevertheless, it is imperative to prevent drastic falls and preserve currency stability. Inclusion in Global bond indices would cater well for Rupee stability because it allows for parking of global passive funds in Indian markets. Expanding the horizons of Rupee will increase its worldwide acceptance and builds trust. Precisely the reason why the national government is bent on internationalization of the Rupee, even if it shrinks the fiscal space of the government.

WATCH WION LIVE HERE:&nbsp;

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The Rupee plunged below the 82 mark for the first time against the US dollar on 29 September. By 10 October, the Rupee further slid downhill to 82.75. The currency had been on a fast-paced downslide over the recent months along with its Asian peers.

The Rupee plunged below the 82 mark for the first time against the US dollar on 29 September. By 10 October, the Rupee further slid downhill to 82.75. The currency had been on a fast-paced downslide over the recent months along with its Asian peers. Various factors have contributed to currency instability when the world is staring at a looming economic uncertainty. War and the crude prices The hike and volatility in crude prices caused due to the war in Ukraine has significantly moved up India’s import costs, thereby creating more demand for the US dollar. The pent-up demand after the COVID-19 crisis has not been met with sufficient supplies. The zero-Covid strategy in China had greatly subdued its manufacturing potential, leaving the world short of adequate supplies. The disruption of COVID-19 had lent a big blow to the global supply chains, unsettling global and regional connectivity. The sanctions on Russian crude and natural gas have critically affected many European countries. The supply-side constraints have been the major factor behind the high inflation rates reported by chief economies of the world. Fears of recession So far, India has fared better than the US and other western economies. The inflation rate in India is hovering around 7 per cent which is still in the manageable spectrum. The US and many European countries consistently report inflation rates of over 8 per cent which is way over the norms of advanced economies. The continuing hawkish stance of the Federal Reserve is further bolstering fears of recession. The climate of creeping instability is forcing all the money to be parked in safe havens like the US dollar as a hedge against potential risks. Foreign Institutional Investors (FIIs) had been net sellers in the Indian Stock Market during September. Yuan depreciation in recent months has made Chinese imports much more attractive that further led to the lowering of demand for the Indian Rupee. Aggregately, prevailing economic conditions are causing widening of the Current Account Deficit (CAD) of the country. As per the latest data from RBI, the CAD increased from 1.5 per cent of the GDP in the January-March quarter to 2.8 per cent of the GDP in the April-June quarter. The Reserve Bank of India (RBI), India’s central bank, sold its Foreign Exchange Reserves (Forex) aggressively from July to prevent the Rupee from crossing the psychological mark of 80. India’s Forex dropped to $537.5 billion by 23 September, the lowest level since August 2020. The Rupee settlement system The RBI for a long time has been deliberating on ways to reduce dependence on the US dollar and tide over US sanctions in various parts of the globe. In July, the RBI permitted international trade to be invoiced, denominated, and settled in Indian Rupee. Market forces would determine the rate of exchange of trade. Touted as an early step toward internationalization of the Indian Rupee, it remains to be seen how the step will play out in the long term. Deputy Governor of the RBI said on 30 September that around five countries have responded positively to its plan to settle international trade in Rupees, but the process involves technicalities at the level of banks and is going to take some time. If implemented in the long term, the mechanism would reduce the over-dependence on the US dollar and save precious Forex reserves. In the near future, major benefits could be reaped in trade with Russia and Iran, where the US sanctions have made the trade in US dollars almost an impossibility. Countries with an export surplus with India might not be largely enthusiastic straightaway, because they will have no use for excess Rupee unless it has achieved widespread international acceptance. Inclusion in Global bond indices India’s efforts to get included in the Global bond indices is another step by the government that could alter the currency status-quo. The RBI is working closely with the government to enable international settlement of government securities and incorporation of rupee-denominated bonds in Global bond indices. Russia’s recent exclusion from the JP Morgan government bond index-emerging markets (GBI-EM) has left the index unbalanced boosting India’s chances of inclusion. Morgan Stanley, a leading brokerage firm said that the inclusion could attract $170 billion to $250 billion to India in foreign inflows over the next decade. The firm also expects the Rupee to appreciate by 2 per cent every year in REER (Real Effective Exchange Rate) terms, in addition to creating a better investment climate. JP Morgan GBI-EM and FTSE Russell—two Global bond indices have already put India on the watch list for possible inclusion. Major hindrances that need to be removed before inclusion are India’s local bond settlement rules and tax hurdles. In September, GBI-EM deferred inclusion of Indian government bonds till early next year. The government is not yet willing to exempt foreign investors from capital gains tax because it would discriminate against domestic investors. Pilot launch of India’s digital currency On 7 October, the RBI released a concept note on the proposed digital Rupee. One of its stated objectives is the improvement in cross-border transactions. India is wary of the rapidly expanding Chinese CDBC (Central bank digital currency) project and fears being left behind if digital Yuan increases its stature as a global currency. India feels it has to set the ball rolling, to gain a fair share of future global transactions, denominated in Rupee. Gradual depreciation of the Rupee may be good for boosting India’s exports. Nevertheless, it is imperative to prevent drastic falls and preserve currency stability. Inclusion in Global bond indices would cater well for Rupee stability because it allows for parking of global passive funds in Indian markets. Expanding the horizons of Rupee will increase its worldwide acceptance and builds trust. Precisely the reason why the national government is bent on internationalization of the Rupee, even if it shrinks the fiscal space of the government. WATCH WION LIVE HERE:

India: Depreciation pushes RBI to internationalise the Rupee

The rupee depreciated 44 paise and slipped below the 81-mark against the US dollar for the first time ever in early trade on Friday, weighed down by the strong American currency and risk-off sentiment among investors.&nbsp;

Forex traders said escalation of geopolitical risk in&nbsp;Ukraine&nbsp;and rate hikes by the US&nbsp;Fed&nbsp;and Bank of&nbsp;England&nbsp;in a bid to contain&nbsp;inflation&nbsp;sapped risk appetite.&nbsp;

Further, the strength of the American currency in the overseas market, a negative trend in domestic equities, and risk-off moods amid escalation of geopolitical risk in Ukraine weighed on the local unit.&nbsp;

At the interbank foreign exchange, the rupee opened at 81.08 against the greenback, then fell further to 81.23, registering a fall of 44 paise over its previous closing.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/world/indian-external-affairs-minister-s-jaishankar-attends-brics-ministerial-meet-on-sidelines-of-unga-518899" hreflang="en">Indian External Affairs Minister S Jaishankar attends BRICS ministerial meet on sidelines of UNGA</a>

On Thursday, the rupee plunged by 83 paise — its biggest single-day loss in nearly seven months — to close at an all-time low of 80.79 against the US dollar.&nbsp;

The&nbsp;Bank of England hiked&nbsp;its base rate by 50 basis points (bps) to a 14-year high of 2.25 per cent.&nbsp;

The Bank of Japan intervened in the FX market for the&nbsp;first time in 24 years&nbsp;to stem a falling Yen after it kept rates at record lows, IFA Global Research Academy said, adding that the Swiss National Bank hiked rates by a record 75 bps to 0.5 per cent.&nbsp;

The US Fed has hiked interest rates by 75 basis points to 3-3.25 per cent.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/south-asia/un-memo-says-pakistan-should-suspend-debt-repayments-following-devastating-floods-reports-518889">UN memo says Pakistan should suspend debt repayments: Reports</a>

On Thursday, RBI was conspicuous by its absence from the spot market as the rupee fell by 1 per cent possibly as it wanted the rupee to do the catching up, said Anil Kumar Bhansali, head of rreasury, Finrex Treasury Advisors.&nbsp;

“All major events are over for this month as we await RBI’s MPC to give its verdict on September 30, 2022,” Bhansali added.&nbsp;

Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.05 per cent to 111.41.&nbsp;

Global oil benchmark Brent crude futures fell 0.57 per cent to USD 89.94 per barrel.&nbsp;

On the domestic equity market front, the 30-share&nbsp;BSE Sensex was trading&nbsp;558.59 points or 0.94 per cent down at 58,561.13, while the broader NSE Nifty fell 153.10 points or 0.87 per cent to 17,476.70.&nbsp;

Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 2,509.55 crore, as per exchange data.&nbsp;

The rupee depreciated 44 paise and slipped below the 81-mark against the US dollar for the first time ever in early trade on Friday, weighed down by the strong American currency and risk-off sentiment among investors.

The rupee depreciated 44 paise and slipped below the 81-mark against the US dollar for the first time ever in early trade on Friday, weighed down by the strong American currency and risk-off sentiment among investors. Forex traders said escalation of geopolitical risk in Ukraine and rate hikes by the US Fed and Bank of England in a bid to contain inflation sapped risk appetite. Further, the strength of the American currency in the overseas market, a negative trend in domestic equities, and risk-off moods amid escalation of geopolitical risk in Ukraine weighed on the local unit. At the interbank foreign exchange, the rupee opened at 81.08 against the greenback, then fell further to 81.23, registering a fall of 44 paise over its previous closing. Also read | Indian External Affairs Minister S Jaishankar attends BRICS ministerial meet on sidelines of UNGA On Thursday, the rupee plunged by 83 paise — its biggest single-day loss in nearly seven months — to close at an all-time low of 80.79 against the US dollar. The Bank of England hiked its base rate by 50 basis points (bps) to a 14-year high of 2.25 per cent. The Bank of Japan intervened in the FX market for the first time in 24 years to stem a falling Yen after it kept rates at record lows, IFA Global Research Academy said, adding that the Swiss National Bank hiked rates by a record 75 bps to 0.5 per cent. The US Fed has hiked interest rates by 75 basis points to 3-3.25 per cent. Also read | UN memo says Pakistan should suspend debt repayments: Reports On Thursday, RBI was conspicuous by its absence from the spot market as the rupee fell by 1 per cent possibly as it wanted the rupee to do the catching up, said Anil Kumar Bhansali, head of rreasury, Finrex Treasury Advisors. “All major events are over for this month as we await RBI’s MPC to give its verdict on September 30, 2022,” Bhansali added. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, advanced 0.05 per cent to 111.41. Global oil benchmark Brent crude futures fell 0.57 per cent to USD 89.94 per barrel. On the domestic equity market front, the 30-share BSE Sensex was trading 558.59 points or 0.94 per cent down at 58,561.13, while the broader NSE Nifty fell 153.10 points or 0.87 per cent to 17,476.70. Foreign institutional investors were net sellers in the capital market on Thursday as they offloaded shares worth Rs 2,509.55 crore, as per exchange data.

Indian rupee hits new low, slips below 81-mark against US dollar for the first time ever

The Indian rupee firmed ahead of a central bank monetary policy decision on Friday, supported by overnight weakness in oil prices and the dollar.

Indian rupee strengthens ahead of RBI decision

The Indian rupee hit 80 per dollar on Tuesday (July 19), for the first time ever, yet another record low, as international investors kept offloading the Indian stocks. The rupee fell to 80.06 against the dollar. The currency has been impacted by the nation’s record high foreign equity outflows of about $30 billion so far this year, now worrying about a widening current account deficit in the face of high oil and commodities prices. The Indian policymakers have taken various steps to stop the rupee’s slide such as from intervention to hiking import taxes on gold, Bloomberg reported.&nbsp;

As per Governor Shaktikanta Das, the Indian central bank is intervening in all market segments to reduce the risk and support a currency’s orderly appreciation or depreciation. However, the Indian rupee touched a record low for the seventh straight session on Tuesday, Reuters reported.&nbsp;

Also read | <a href="https://www.wionews.com/india-news/india-is-set-it-on-course-to-becoming-the-fastest-growing-economy-in-the-world-rbi-498137">India is 'on course to becoming the fastest growing economy in the world': RBI</a>

The RBI has been using its $600 billion in foreign exchange reserves to defend the Indian rupee. Additionally, the monetary authorities enabled trade to be settled in rupees and announced initiatives to increase the foreign currency inflows into the nation.&nbsp;

However, Tuesday saw a decline in oil prices as the dollar fueled purchasing demand. As the West sanctions in Russia, the supplies have disrupted trade flows to refiners and have been a thorn on the side of the oil markets. At the same time, there have been growing concerns that the central bank's efforts to tame surging inflation may lead to recession, which would reduce future fuel demand. Despite the decline in oil prices, several banks were already charging 80 rupees for every dollar in the exchange rate, the State Bank of India said.&nbsp;

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/indian-rupee-set-to-depreciate-further-all-set-to-breach-80-per-us-dollar-497209">Indian rupee set to depreciate further, to breach 80 per US dollar</a>

However, it is expected that the&nbsp;rupee might fall to 82 to the dollar by September this year, according to strategists at Nomura holdings Inc. and Morgan Stanley, Bloomberg reported.&nbsp;

The rupee has been reported to reach fresh record lows practically every other day in recent months, and traders believe this trend will continue.&nbsp;

(With inputs from agencies)

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The Indian rupee hit 80 per dollar on Tuesday (July 19), for the first time ever, yet another record low, as international investors kept offloading the Indian stocks.

The Indian rupee hit 80 per dollar on Tuesday (July 19), for the first time ever, yet another record low, as international investors kept offloading the Indian stocks. The rupee fell to 80.06 against the dollar. The currency has been impacted by the nation’s record high foreign equity outflows of about $30 billion so far this year, now worrying about a widening current account deficit in the face of high oil and commodities prices. The Indian policymakers have taken various steps to stop the rupee’s slide such as from intervention to hiking import taxes on gold, Bloomberg reported. As per Governor Shaktikanta Das, the Indian central bank is intervening in all market segments to reduce the risk and support a currency’s orderly appreciation or depreciation. However, the Indian rupee touched a record low for the seventh straight session on Tuesday, Reuters reported. Also read | India is 'on course to becoming the fastest growing economy in the world': RBI The RBI has been using its $600 billion in foreign exchange reserves to defend the Indian rupee. Additionally, the monetary authorities enabled trade to be settled in rupees and announced initiatives to increase the foreign currency inflows into the nation. However, Tuesday saw a decline in oil prices as the dollar fueled purchasing demand. As the West sanctions in Russia, the supplies have disrupted trade flows to refiners and have been a thorn on the side of the oil markets. At the same time, there have been growing concerns that the central bank's efforts to tame surging inflation may lead to recession, which would reduce future fuel demand. Despite the decline in oil prices, several banks were already charging 80 rupees for every dollar in the exchange rate, the State Bank of India said. Also read | Indian rupee set to depreciate further, to breach 80 per US dollar However, it is expected that the rupee might fall to 82 to the dollar by September this year, according to strategists at Nomura holdings Inc. and Morgan Stanley, Bloomberg reported. The rupee has been reported to reach fresh record lows practically every other day in recent months, and traders believe this trend will continue. (With inputs from agencies) WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Indian rupee hits low of 80 per dollar for the first time ever

The Indian rupee breached 80 against the US dollar amid expectations of an aggressive rate hike by the US Federal Reserve. What explains the rupee's rapid depreciation? What does it mean for the average Indian citizen? Palki Sharma tells you.

Gravitas: Rupee's historic plunge, breaches 80 against dollar

With the Indian rupee plunging to historic lows against the dollar, analysts have predicted that the local currency is all set to touch the 80-rupee barrier against the US currency.

For the past four to five days, the Indian currency has been facing severe blowbacks as foreign institutional investors have continued to dump Indian equities in search of safe haven US dollars, putting further pressure on the local currency.

At the start of the year, the rupee-dollar exchange rate was at 74. But recession fears, the Russian invasion of Ukraine and the resultant spike in oil and gas prices have put tremendous pressure on the rupee.

According to Bloomberg data, the currency has slumped to a new record low level 26 times since Russia invaded Ukraine late in February.

On Thursday, the local currency opened trading at a lifetime low of 79.71 (provisional) per US dollar compared to its previous close of 79.63.

Analysts believe that the rupee-dollar exchange rate will most certainly touch 80 as the experts expect the United States Federal Reserve to hike the interest rates by another 75 to 100 basis points at the end of the month to tackle hot inflation. This will further trigger the outflow of dollars from India and back to the US.

“Rupee is expected to depreciate today (Thursday) amid strong dollar and risk aversion in global markets. Market sentiments are hurt as red hot inflation in the US stoked bets that the US Fed may have to raise interest rates much more than expected, even 100 bps. Additionally, consistent FII outflows and concerns on looming recession may hurt rupee. US$INR (July) is expected to trade in a range of 79.50-80.00," said ICICI Direct in a statement.

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&nbsp;

With the Indian rupee plunging to historic lows against the dollar, analysts have predicted that the local currency is all set to touch the 80-rupee barrier against the US currency.

With the Indian rupee plunging to historic lows against the dollar, analysts have predicted that the local currency is all set to touch the 80-rupee barrier against the US currency. For the past four to five days, the Indian currency has been facing severe blowbacks as foreign institutional investors have continued to dump Indian equities in search of safe haven US dollars, putting further pressure on the local currency. At the start of the year, the rupee-dollar exchange rate was at 74. But recession fears, the Russian invasion of Ukraine and the resultant spike in oil and gas prices have put tremendous pressure on the rupee. According to Bloomberg data, the currency has slumped to a new record low level 26 times since Russia invaded Ukraine late in February. On Thursday, the local currency opened trading at a lifetime low of 79.71 (provisional) per US dollar compared to its previous close of 79.63. Analysts believe that the rupee-dollar exchange rate will most certainly touch 80 as the experts expect the United States Federal Reserve to hike the interest rates by another 75 to 100 basis points at the end of the month to tackle hot inflation. This will further trigger the outflow of dollars from India and back to the US. “Rupee is expected to depreciate today (Thursday) amid strong dollar and risk aversion in global markets. Market sentiments are hurt as red hot inflation in the US stoked bets that the US Fed may have to raise interest rates much more than expected, even 100 bps. Additionally, consistent FII outflows and concerns on looming recession may hurt rupee. US$INR (July) is expected to trade in a range of 79.50-80.00," said ICICI Direct in a statement. WATCH WION LIVE HERE

Indian rupee set to depreciate further, to breach 80 per US dollar

The Reserve Bank of India has rolled out a system to settle international trade transactions in the Indian rupee instead of the dollar. How does the rupee trade work? How will it impact India's trade relations? Palki Sharma tells you.

Gravitas: RBI announces rupee mechanism for foreign trade

The&nbsp;Indian central bank's decision to let importers pay with&nbsp;rupees&nbsp;and&nbsp;exporters be paid in&nbsp;rupees is likely to make&nbsp;trade&nbsp;easier with&nbsp;Russia&nbsp;and&nbsp;South Asian&nbsp;neighbours,&nbsp;and&nbsp;will&nbsp;help&nbsp;a long term goal to internationalise the currency,&nbsp;experts&nbsp;said.

On Monday, the Reserve Bank of&nbsp;India&nbsp;said it had put in place a mechanism for international&nbsp;trade&nbsp;settlements in&nbsp;Indian&nbsp;rupees (INR) with immediate effect.

Also read |&nbsp;<a href="https://www.wionews.com/india-news/rupee-hits-all-time-low-of-789-against-dollar-80-level-at-sight-492813">Rupee hits all-time low of 78.9 against dollar; 80-level at sight</a>

The RBI said that "in order to promote growth of global&nbsp;trade&nbsp;with emphasis on exports from&nbsp;India&nbsp;and&nbsp;to support the increasing interest of global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment,&nbsp;and&nbsp;settlement&nbsp;of exports/imports in INR."

"This step can be particularly useful for neighbouring countries,&nbsp;and&nbsp;also those countries willing to use the&nbsp;rupee&nbsp;as a base currency for&nbsp;trade&nbsp;diversification in their&nbsp;settlement&nbsp;rules," said Rahul Bajoria, chief&nbsp;India&nbsp;economist at Barclays.

Watch |&nbsp;RBI allows payment for International trade in Rupee

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Engineering Export Promotion Council chairman Mahesh Desai noted the new mechanism "would facilitate&nbsp;trade&nbsp;with countries under sanctions, like&nbsp;Iran&nbsp;and&nbsp;Russia."

Trade&nbsp;between&nbsp;India&nbsp;and&nbsp;Russia&nbsp;has come to a virtual standstill due to sanctions imposed on&nbsp;Russia&nbsp;over the war in Ukraine.

Also read |&nbsp;<a href="https://www.wionews.com/business-economy/indian-rupee-slides-to-record-low-of-7782-against-us-dollar-486849">Indian rupee slides to record low of 77.82 against US dollar</a>

The new steps allow&nbsp;Indian exporters&nbsp;and&nbsp;importers to use special&nbsp;Rupee&nbsp;Vostro Accounts to settle&nbsp;trade&nbsp;denominated in&nbsp;rupees,&nbsp;and&nbsp;banks will need the RBI's approval to use the&nbsp;settlement&nbsp;system.

"We see this as a first step towards 100 per cent&nbsp;convertibility of&nbsp;rupee," Desai said, noting it would also reduce currency fluctuation risks for importers&nbsp;and&nbsp;exporters.

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The Indian central bank's decision to let importers pay with rupees and exporters be paid in rupees is likely to make trade easier with Russia and South Asian neighbours, and will help a long term goal to internationalise the currency, experts said.

The Indian central bank's decision to let importers pay with rupees and exporters be paid in rupees is likely to make trade easier with Russia and South Asian neighbours, and will help a long term goal to internationalise the currency, experts said. On Monday, the Reserve Bank of India said it had put in place a mechanism for international trade settlements in Indian rupees (INR) with immediate effect. Also read | Rupee hits all-time low of 78.9 against dollar; 80-level at sight The RBI said that "in order to promote growth of global trade with emphasis on exports from India and to support the increasing interest of global trading community in INR, it has been decided to put in place an additional arrangement for invoicing, payment, and settlement of exports/imports in INR." "This step can be particularly useful for neighbouring countries, and also those countries willing to use the rupee as a base currency for trade diversification in their settlement rules," said Rahul Bajoria, chief India economist at Barclays. Watch | RBI allows payment for International trade in Rupee Engineering Export Promotion Council chairman Mahesh Desai noted the new mechanism "would facilitate trade with countries under sanctions, like Iran and Russia." Trade between India and Russia has come to a virtual standstill due to sanctions imposed on Russia over the war in Ukraine. Also read | Indian rupee slides to record low of 77.82 against US dollar The new steps allow Indian exporters and importers to use special Rupee Vostro Accounts to settle trade denominated in rupees, and banks will need the RBI's approval to use the settlement system. "We see this as a first step towards 100 per cent convertibility of rupee," Desai said, noting it would also reduce currency fluctuation risks for importers and exporters. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Rupee settlement will help India trade with Russia, Iran and S Asian neighbours - experts

The increasing global crude oil prices and inflation concerns turned slippery for the Indian rupee as it went down against the US dollar on Tuesday. 
 
Further, foreign investors (FII) continued to sell their equity holdings on the bourses. 
 
The Indian rupee opened at Rs 78.50 and went down to touch a fresh record low of 78.68 against the dollar. 
 
As crude prices increase, the rupee may further slip down, analysts said. 
 
The Reserve Bank of India (RBI) intervened by selling dollars to stabilise the rupee rate but the demand for the US currency was high. 
 
According to a report by Emkay Global Financial Services Ltd, a total of $34 billion (FII equities and FII debt) has flown out of India during the last eight months. 
 
As the world faces dollar funding stress, the RBI`s foreign exchange management strategy (spot intervention + Buy-Sell swaps) could backfire, if persisted for long, Emkay Global said. 
 
According to Emkay Global, the Indian rupee performance has been caught between worsening external terms of trade led by oil, a fast-changing global risk environment, sharp foreign portfolio investments (equity) outflows and the RBI`s foreign exchange stance.

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The increasing global crude oil prices and inflation concerns turned slippery for the Indian rupee as it went down against the US dollar on Tuesday. Further, foreign investors (FII) continued to sell their equity holdings on the bourses.

The increasing global crude oil prices and inflation concerns turned slippery for the Indian rupee as it went down against the US dollar on Tuesday. Further, foreign investors (FII) continued to sell their equity holdings on the bourses. The Indian rupee opened at Rs 78.50 and went down to touch a fresh record low of 78.68 against the dollar. As crude prices increase, the rupee may further slip down, analysts said. The Reserve Bank of India (RBI) intervened by selling dollars to stabilise the rupee rate but the demand for the US currency was high. According to a report by Emkay Global Financial Services Ltd, a total of $34 billion (FII equities and FII debt) has flown out of India during the last eight months. As the world faces dollar funding stress, the RBI`s foreign exchange management strategy (spot intervention + Buy-Sell swaps) could backfire, if persisted for long, Emkay Global said. According to Emkay Global, the Indian rupee performance has been caught between worsening external terms of trade led by oil, a fast-changing global risk environment, sharp foreign portfolio investments (equity) outflows and the RBI`s foreign exchange stance. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

Indian rupee slips to 78.68 against US dollar

Global markets suffered their worst slide since June 2020 amid uncertainties surrounding the war and pandemic. The Indian Rupee hit an all-time low against the US Dollar. Are these indications of a looming recession? Palki Sharma tells you.

Gravitas: Worst day for global markets since June 2020

These are challenging times for the Indian Rupee. A study claims the Rupee is set to end the year as Asia's worst-performing emerging market currency. What are the challenges? Palki Sharma tells you.

Gravitas: Is Indian Rupee 'Asia's worst-performing currency'?

The Indian rupee tanked 36 paise to an all-time low of 76.80 against the US dollar in opening trade on Thursday, tracking weak domestic equities and a sharp rise in coronavirus cases in the country.

Forex traders said the weakness in the rupee was largely due to strengthening of the US Dollar against the basket of currencies as investors fled to safe-haven Greenback amid weakening risk appetite in the markets.

The rupee opened weak at 76.75 at the interbank forex market and then fell further to hit an all-time low of 76.80, down 36 paise over its last close.

The rupee had settled at 76.44 against the US dollar on Wednesday.

The currency could also track local equity markets which started on a negative note as Asian stock markets are set to tumble amid increasing gloomy economic outlooks for Asia, Reliance Securities said in a report.

IMF said Thursday that Asia's economic growth this year will grind to a halt for the first time in 60 years, as the coronavirus crisis takes an "unprecedented" toll on the region's service sector and major export destinations, the report noted.

Moreover, market participants are also concerned that the sharp rise in coronavirus cases, could weigh on the economy.

The number of cases around the world linked to the new coronavirus has crossed over 20 lakh. In India, nearly 12,000 coronavirus cases have been reported so far.

Brent crude futures, the global oil benchmark, rose 1.44 per cent to USD 28.09 per barrel.

Foreign institutional investors (FIIs) were net buyers in the capital markets, as they bought shares worth Rs 1,358.66 crore on Wednesday, as per provisional data.

Domestic bourses opened on a negative note with benchmark indices Sensex trading 116.89 points lower at 30,262.92 and Nifty down by 36.50 points at 8,888.80.

The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.46 per cent to 99.91. &nbsp;

The Indian rupee tanked 36 paise to an all-time low of 76.80 against the US dollar in opening trade on Thursday, tracking weak domestic equities and a sharp rise in coronavirus cases in the country.

The Indian rupee tanked 36 paise to an all-time low of 76.80 against the US dollar in opening trade on Thursday, tracking weak domestic equities and a sharp rise in coronavirus cases in the country. Forex traders said the weakness in the rupee was largely due to strengthening of the US Dollar against the basket of currencies as investors fled to safe-haven Greenback amid weakening risk appetite in the markets. The rupee opened weak at 76.75 at the interbank forex market and then fell further to hit an all-time low of 76.80, down 36 paise over its last close. The rupee had settled at 76.44 against the US dollar on Wednesday. The currency could also track local equity markets which started on a negative note as Asian stock markets are set to tumble amid increasing gloomy economic outlooks for Asia, Reliance Securities said in a report. IMF said Thursday that Asia's economic growth this year will grind to a halt for the first time in 60 years, as the coronavirus crisis takes an "unprecedented" toll on the region's service sector and major export destinations, the report noted. Moreover, market participants are also concerned that the sharp rise in coronavirus cases, could weigh on the economy. The number of cases around the world linked to the new coronavirus has crossed over 20 lakh. In India, nearly 12,000 coronavirus cases have been reported so far. Brent crude futures, the global oil benchmark, rose 1.44 per cent to USD 28.09 per barrel. Foreign institutional investors (FIIs) were net buyers in the capital markets, as they bought shares worth Rs 1,358.66 crore on Wednesday, as per provisional data. Domestic bourses opened on a negative note with benchmark indices Sensex trading 116.89 points lower at 30,262.92 and Nifty down by 36.50 points at 8,888.80. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.46 per cent to 99.91.

Rupee tanks 36 paise to all-time low of 76.80 against US dollar in early trade

The yen and other safe-haven currencies were in demand on Monday, along with assets such as gold, as investors fretted that the killing of Iran's most prominent military commander by the United States could trigger a broader Middle East conflict. However, the Indian Rupee has slipped further since the conflict broke out from 71 rupees and 13 paise on New Year's. It has now risen to around 72 rupees against the US dollar. #USAirStike #USIranTension #IndianRupee #USDollar

Amid US-Iran tensions Indian rupee slips further

The <a href="https://www.wionews.com/business-%26-economy/indian-rupee-since-independence-a-brief-history-159436">Indian&nbsp;rupee</a>&nbsp;will not recover lost ground in the coming&nbsp;year, according to a&nbsp;Reuters&nbsp;poll&nbsp;of currency strategists who are more pessimistic than last month amid doubts over any kind of trade truce between the United States and China.

Most emerging markets currencies have depreciated against the <a href="https://www.wionews.com/business-economy/rupee-slips-17-paise-to-6932-vs-us-dollar-in-early-trade-230729">US&nbsp;dollar</a>, hurt by the tit-for-tat trade war between the world's two largest economies, and there are scant signs of a resolution anytime soon.

Also weighing on the currency's outlook, the <a href="https://www.wionews.com/business-economy/india-seen-making-sixth-interest-rate-cut-but-no-cure-for-economys-ills-265905">Reserve Bank of India </a>has cut its key interest rate by 135 basis points&nbsp;so far this&nbsp;year&nbsp;to support a slowing economy. It is expected to cut the repo rate by another 25 basis points to 4.90 per cent&nbsp;on Thursday.

"Global trade talks are turning topsy-turvy, a lot will depend on how that plays out. Domestically, the tide has turned rough for the <a href="https://www.wionews.com/videos/reserve-bank-of-india-scales-down-printing-of-inr-2000-notes-188206">INR</a>, led by tapering of domestic growth optimism and fiscal worries - all weighing on the&nbsp;rupee's way forward," Madhavi Arora, lead economist, FX and rates at Edelweiss Securities said.

"After December's rate cut&nbsp;reforms in the banking sector and strong infrastructure investments are needed in addition to a monetary stimulus to help growth and the&nbsp;rupee."

The December 2-4&nbsp;poll, taken before the monetary policy committee's announcement due later on Thursday, showed the currency would weaken 0.6 per cent&nbsp;to 72.00 per dollar in a&nbsp;year&nbsp;from 71.57 where it was trading around on Wednesday.

The&nbsp;year&nbsp;ahead outlook was the most pessimistic for the&nbsp;rupee&nbsp;since October.

Over the coming&nbsp;year, 23 of 51 strategists expected the&nbsp;rupee&nbsp;to breach 72.40 against the dollar&nbsp;its weakest trade this&nbsp;year. Six of those expected it to weaken beyond its lifetime low of 74.48 per dollar.

But a few analysts argued the&nbsp;rupee's weakness was a deliberate attempt by the RBI to boost exports that have been on a downward trend.

"There is a conscious effort by the RBI to provide a depreciation bias to the&nbsp;rupee. That could probably become a new norm for at&nbsp;least&nbsp;sometimes, so the export sector slightly benefits," said Upasna Bhardwaj, senior economist at Kotak Mahindra Bank.

"The pace at which the RBI has been buying dollars clearly signals a new policy the RBI is adopting. Its bias for a relatively weaker currency will determine its direction. This is an unsaid policy obviously, but through actions like dollar purchases it is suggestive of that."

The Indian rupee will not recover lost ground in the coming year, according to a Reuters poll of currency strategists who are more pessimistic than last month amid doubts over any kind of trade truce between the United States and China.

The Indian rupee will not recover lost ground in the coming year, according to a Reuters poll of currency strategists who are more pessimistic than last month amid doubts over any kind of trade truce between the United States and China. Most emerging markets currencies have depreciated against the US dollar, hurt by the tit-for-tat trade war between the world's two largest economies, and there are scant signs of a resolution anytime soon. Also weighing on the currency's outlook, the Reserve Bank of India has cut its key interest rate by 135 basis points so far this year to support a slowing economy. It is expected to cut the repo rate by another 25 basis points to 4.90 per cent on Thursday. "Global trade talks are turning topsy-turvy, a lot will depend on how that plays out. Domestically, the tide has turned rough for the INR, led by tapering of domestic growth optimism and fiscal worries - all weighing on the rupee's way forward," Madhavi Arora, lead economist, FX and rates at Edelweiss Securities said. "After December's rate cut reforms in the banking sector and strong infrastructure investments are needed in addition to a monetary stimulus to help growth and the rupee." The December 2-4 poll, taken before the monetary policy committee's announcement due later on Thursday, showed the currency would weaken 0.6 per cent to 72.00 per dollar in a year from 71.57 where it was trading around on Wednesday. The year ahead outlook was the most pessimistic for the rupee since October. Over the coming year, 23 of 51 strategists expected the rupee to breach 72.40 against the dollar its weakest trade this year. Six of those expected it to weaken beyond its lifetime low of 74.48 per dollar. But a few analysts argued the rupee's weakness was a deliberate attempt by the RBI to boost exports that have been on a downward trend. "There is a conscious effort by the RBI to provide a depreciation bias to the rupee. That could probably become a new norm for at least sometimes, so the export sector slightly benefits," said Upasna Bhardwaj, senior economist at Kotak Mahindra Bank. "The pace at which the RBI has been buying dollars clearly signals a new policy the RBI is adopting. Its bias for a relatively weaker currency will determine its direction. This is an unsaid policy obviously, but through actions like dollar purchases it is suggestive of that."

Indian Rupee on slippery slope for at least a year: Sources

The Indian rupee recouped most of its early losses and closed marginally lower at 69.28 to the US dollar after the Reserve Bank in a widely expected move cut key interest rates by 0.25 percentage point.

To boost the sagging economy, the RBI Thursday lowered its benchmark lending rate to a nearly nine-year low of 5.75 per cent and changed its monetary policy stance to accommodative, leaving space for future rate cuts.

After opening on a weak note at 69.41 at the interbank forex market, the Indian unit fell further to 69.45 against the US currency. Following the RBI's Monetary Policy Committee (MPC) decision, the local currency recovered most of the lost ground and settled for the day at 69.28, down 2 paise over its previous close.

The rupee had settled at 69.26 against the US dollar Tuesday.

Indian bonds and Forex markets were closed Wednesday on account of Id-Ul-Fitr.

"Market participants had already priced in the rate cut in monetary policy meet," said V K Sharma Head-PCG &amp; Capital Market Strategy, HDFC securities.

Forex traders said, foreign fund outflows and rising crude oil prices also kept pressure on the Indian rupee. Moreover, heavy selling in domestic equities also weighed on the local unit.

Foreign funds pulled out Rs 416.08 crore in the capital markets on a net basis Tuesday, provisional data showed.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.04 per cent to 97.28.

Meanwhile, the 10-year government bond yield was at 6.93 per cent on Thursday.

"The sovereign Indian bonds advanced on speculation that the central bank in addition to cutting rates may also take measures to ease liquidity in the banking system," Sharma said.

Meanwhile, the RBI lowered its growth forecast for the economy to 7 per cent from the April view of 7.2 per cent for the 2019-20 April-March fiscal year.

Brent crude futures, the global oil benchmark, rose 1.20 per cent to trade at USD 61.36 per barrel.

Benchmark indices settled for the day in the negative territory. The 30-share index cracked 553.82 points, or 1.38 per cent, to settle at 39,529.72. 
In similar movement, the NSE Nifty plunged 177.90 points, or 1.48 per cent, to end at 11,843.75.

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.2918 and for rupee/euro at 78.0009. The reference rate for rupee/British pound was fixed at 87.8324 and for rupee/100 Japanese yen at 64.21.&nbsp;

The Indian rupee recouped most of its early losses and closed marginally lower at 69.28 to the US dollar after the Reserve Bank in a widely expected move cut key interest rates by 0.

The Indian rupee recouped most of its early losses and closed marginally lower at 69.28 to the US dollar after the Reserve Bank in a widely expected move cut key interest rates by 0.25 percentage point. To boost the sagging economy, the RBI Thursday lowered its benchmark lending rate to a nearly nine-year low of 5.75 per cent and changed its monetary policy stance to accommodative, leaving space for future rate cuts. After opening on a weak note at 69.41 at the interbank forex market, the Indian unit fell further to 69.45 against the US currency. Following the RBI's Monetary Policy Committee (MPC) decision, the local currency recovered most of the lost ground and settled for the day at 69.28, down 2 paise over its previous close. The rupee had settled at 69.26 against the US dollar Tuesday. Indian bonds and Forex markets were closed Wednesday on account of Id-Ul-Fitr. "Market participants had already priced in the rate cut in monetary policy meet," said V K Sharma Head-PCG & Capital Market Strategy, HDFC securities. Forex traders said, foreign fund outflows and rising crude oil prices also kept pressure on the Indian rupee. Moreover, heavy selling in domestic equities also weighed on the local unit. Foreign funds pulled out Rs 416.08 crore in the capital markets on a net basis Tuesday, provisional data showed. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.04 per cent to 97.28. Meanwhile, the 10-year government bond yield was at 6.93 per cent on Thursday. "The sovereign Indian bonds advanced on speculation that the central bank in addition to cutting rates may also take measures to ease liquidity in the banking system," Sharma said. Meanwhile, the RBI lowered its growth forecast for the economy to 7 per cent from the April view of 7.2 per cent for the 2019-20 April-March fiscal year. Brent crude futures, the global oil benchmark, rose 1.20 per cent to trade at USD 61.36 per barrel. Benchmark indices settled for the day in the negative territory. The 30-share index cracked 553.82 points, or 1.38 per cent, to settle at 39,529.72. In similar movement, the NSE Nifty plunged 177.90 points, or 1.48 per cent, to end at 11,843.75. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.2918 and for rupee/euro at 78.0009. The reference rate for rupee/British pound was fixed at 87.8324 and for rupee/100 Japanese yen at 64.21.

Rupee ends almost flat at 69.28 against dollar after RBI cuts rate

The Maha Exit poll 2019 of Zee Media Network predicts National Democratic Alliance (NDA) to win more than 300 seats in Lok Sabha election 2019, and that wil be a massive victory. Watch out how the Indian market reacts over exit-poll.

LS polls exit-poll: Indian rupee also opens higher against US Dollar

The Indian rupee Monday surged by 57 paise to close at an over seven-month high of 68.53 against the US dollar, also marking a sixth straight session of gains, driven by sustained foreign fund inflows and narrowing trade deficit.

Besides, weakness in the greenback against major global currencies and a heavy buying in domestic equities aided the forex market sentiment domestically.

The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.20 per cent to 96.40.

At the Interbank Foreign Exchange, the rupee opened at 68.92 and advanced to a high of 68.45 during the day. It finally settled at 68.53, a rise of 57 paise against the dollar over its previous close. This was the highest closing level for the rupee since August 1, 2018 -- when it ended at 68.43.

On Friday, the domestic currency had closed at 69.10 against the US dollar.

In the last six trading sessions, the rupee has appreciated by 161 paise.

"Indian rupee continues advancing for the sixth day in a row, marking the best performer among the Asian currencies in today's trade amid better than expected trade data and foreign fund flows," said V K Sharma, Head PCG &amp; Capital Markets Strategy, HDFC Securities.

According to data released by the commerce ministry, the marginal 2.44 per cent rise in exports, as well as lower imports of gold and petroleum products in February, significantly narrowed the country's trade deficit to $9.6 billion.

Meanwhile, the Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 68.6088 and for rupee/euro at 77.7827. The reference rate for rupee/British pound was fixed at 91.1184 and for rupee/100 Japanese yen at 61.50.

Further lifting market sentiment, foreign institutional investors (FIIs) put in Rs 1,822.99 crore on a net basis on Monday, provisional data showed.

"Overseas investors have bought $2.4 billion in equities this month,&nbsp;taking net foreign purchases to $4.7 billion, the highest in Asia. Global funds have raised holdings of rupee-denominated bonds by $833 million this month, HDFC Securities' Sharma said citing exchange data.

In line with rupee movement, equity benchmark Sensex too extended its winning streak to a sixth consecutive session. The BSE Sensex gained 70.75 points, or 0.19 per cent, to close at 38,095.07.&nbsp;

The Indian rupee Monday surged by 57 paise to close at an over seven-month high of 68.53 against the US dollar, also marking a sixth straight session of gains, driven by sustained foreign fund inflows and narrowing trade deficit.

The Indian rupee Monday surged by 57 paise to close at an over seven-month high of 68.53 against the US dollar, also marking a sixth straight session of gains, driven by sustained foreign fund inflows and narrowing trade deficit. Besides, weakness in the greenback against major global currencies and a heavy buying in domestic equities aided the forex market sentiment domestically. The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.20 per cent to 96.40. At the Interbank Foreign Exchange, the rupee opened at 68.92 and advanced to a high of 68.45 during the day. It finally settled at 68.53, a rise of 57 paise against the dollar over its previous close. This was the highest closing level for the rupee since August 1, 2018 -- when it ended at 68.43. On Friday, the domestic currency had closed at 69.10 against the US dollar. In the last six trading sessions, the rupee has appreciated by 161 paise. "Indian rupee continues advancing for the sixth day in a row, marking the best performer among the Asian currencies in today's trade amid better than expected trade data and foreign fund flows," said V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities. According to data released by the commerce ministry, the marginal 2.44 per cent rise in exports, as well as lower imports of gold and petroleum products in February, significantly narrowed the country's trade deficit to $9.6 billion. Meanwhile, the Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 68.6088 and for rupee/euro at 77.7827. The reference rate for rupee/British pound was fixed at 91.1184 and for rupee/100 Japanese yen at 61.50. Further lifting market sentiment, foreign institutional investors (FIIs) put in Rs 1,822.99 crore on a net basis on Monday, provisional data showed. "Overseas investors have bought $2.4 billion in equities this month, taking net foreign purchases to $4.7 billion, the highest in Asia. Global funds have raised holdings of rupee-denominated bonds by $833 million this month, HDFC Securities' Sharma said citing exchange data. In line with rupee movement, equity benchmark Sensex too extended its winning streak to a sixth consecutive session. The BSE Sensex gained 70.75 points, or 0.19 per cent, to close at 38,095.07.

Rupee spurts 57 paise to scale new 7-month peak on strong fund flows

The Indian rupee kicked off 2019 on a resounding note, building up on gains of the previous two sessions and adding another 34 paise Tuesday to close at 69.43 against the US dollar on increased selling of the greenback by exporters and smart gains in domestic equities.

The domestic unit has rallied by a hefty 92 paise in the last three trading sessions.

Traders said sustained selling of the American currency by exporters and banks propped up the rupee.

At the Interbank Foreign Exchange (forex), the rupee opened on a firm note at 69.63. It gained further to hit a high of 69.43 following dollar selling by exporters, before finally closing at 69.43, up 34 paise.

On Monday, the rupee signed off the last trading session of 2018 with 18 paise gains at 69.77 per dollar.

However, the domestic currency clocked a 9.23 per cent fall in 2018.

On year-over-year basis, the rupee depreciated by a whopping 509 paise, or 9.23 per cent, as compared to 2017-end level of 63.87.

Domestic brokerage firm Kotak Institutional Equities in a research report said that the year 2019 seems to be a better starting point in terms of valuation, currency.

"The INR seems to be fairly valued; we see mild depreciation in 2019 compared to the sharp correction that it saw in 2018," the report said.

Traders said, a positive trend in the domestic equities also supported the local unit.

Indian equity market started the New Year on a positive note, with BSE benchmark Sensex rising over 186 points Tuesday. The 30-share BSE Sensex closed at 36,254.57, rising 186.24 points or 0.52 per cent. Similarly, the NSE Nifty ended at 10,910.10, gaining 47.55 points or 0.44 per cent.

Meanwhile, foreign funds pulled out Rs 326.87 crore from the capital markets on a net basis, while domestic institutional investors bought shares worth Rs 321.98 crore Monday, provisional data showed.

The dollar index was trading down by 0.31 per cent at 95.87 against a&nbsp; 
basket of six currencies in the late afternoon trade.

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.7131 and for rupee/euro at 79.9330. The reference rate for rupee/British pound was fixed at 88.9748 and for rupee/100 Japanese yen at 63.57.

The Indian rupee kicked off 2019 on a resounding note, building up on gains of the previous two sessions and adding another 34 paise Tuesday to close at 69.43 against the US dollar on increased selling of the greenback by exporters and smart gains in domestic equities.

The Indian rupee kicked off 2019 on a resounding note, building up on gains of the previous two sessions and adding another 34 paise Tuesday to close at 69.43 against the US dollar on increased selling of the greenback by exporters and smart gains in domestic equities. The domestic unit has rallied by a hefty 92 paise in the last three trading sessions. Traders said sustained selling of the American currency by exporters and banks propped up the rupee. At the Interbank Foreign Exchange (forex), the rupee opened on a firm note at 69.63. It gained further to hit a high of 69.43 following dollar selling by exporters, before finally closing at 69.43, up 34 paise. On Monday, the rupee signed off the last trading session of 2018 with 18 paise gains at 69.77 per dollar. However, the domestic currency clocked a 9.23 per cent fall in 2018. On year-over-year basis, the rupee depreciated by a whopping 509 paise, or 9.23 per cent, as compared to 2017-end level of 63.87. Domestic brokerage firm Kotak Institutional Equities in a research report said that the year 2019 seems to be a better starting point in terms of valuation, currency. "The INR seems to be fairly valued; we see mild depreciation in 2019 compared to the sharp correction that it saw in 2018," the report said. Traders said, a positive trend in the domestic equities also supported the local unit. Indian equity market started the New Year on a positive note, with BSE benchmark Sensex rising over 186 points Tuesday. The 30-share BSE Sensex closed at 36,254.57, rising 186.24 points or 0.52 per cent. Similarly, the NSE Nifty ended at 10,910.10, gaining 47.55 points or 0.44 per cent. Meanwhile, foreign funds pulled out Rs 326.87 crore from the capital markets on a net basis, while domestic institutional investors bought shares worth Rs 321.98 crore Monday, provisional data showed. The dollar index was trading down by 0.31 per cent at 95.87 against a basket of six currencies in the late afternoon trade. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.7131 and for rupee/euro at 79.9330. The reference rate for rupee/British pound was fixed at 88.9748 and for rupee/100 Japanese yen at 63.57.

Rupee begins 2019 journey on a high; soars 34 paise against US dollar

The Indian rupee Monday signed off the last trading session of 2018 with 18 paise gains at 69.77 per dollar but clocked a 9.23 per cent fall during the year after witnessing its one of the tumultuous years in the recent past.

On year-over-year basis, the rupee depreciated by a whopping 509 paise, or 9.23 per cent, as compared to 2017-end level of 63.87.

Forex traders, however, said fundamentals are supportive for the rupee over the next 6-12 months amid supportive growth momentum, robust forex reserves.

"Attractive real yields (net of inflation), growth momentum and robust forex reserves of $394 billion and US dollar stabilisation is likely to be positive for the INR," global financial services major Standard Chartered said in a research note.

However, in the near-term, the trend in the US dollar, oil price and ensuing general elections will determine the direction for the local unit, it noted.

The rupee opened higher at 69.76 per dollar as against Friday's closing level of 69.95 at the Interbank Foreign Exchange (Forex) market and hovered in a range of 69.95 and 69.74 before ending at 69.77 per dollar, showing a gain of 18 paise.

The rupee has gained 58 paise in the last two trading sessions.

Meanwhile, the dollar index was trading down by 0.26 per cent at 96.15 against a basket of six currencies in the late afternoon trade.

Indian equity benchmarks Sensex and Nifty Monday ended the last trading session of 2018 on a sluggish note but clocked gains for the third straight year in a row amid positive cues from global markets and strengthening rupee.

Both indices Sensex and Nifty snapped their three-session winning run and closed the final session of the calendar year with marginal losses.

The 30-share BSE index fell 8.39 points, or 0.02 per cent, to finish at 36,068.33; while the broader NSE Nifty edged lower by 2.65 points, or 0.02 per cent, to 10,862.55.

Brent crude, the international benchmark, was up 2.27 per cent at $54.42 per barrel.

Foreign funds pulled out Rs 326.87 crore from the capital markets on a net basis, while domestic institutional investors bought shares worth Rs 321.98 crore Monday, provisional data showed.

The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.7923 and for rupee/euro at 79.7805. The reference rate for rupee/British pound was fixed at 88.5488 and for rupee/100 Japanese yen at 63.21.&nbsp;

The Indian rupee Monday signed off the last trading session of 2018 with 18 paise gains at 69.77 per dollar but clocked a 9.23 per cent fall during the year after witnessing its one of the tumultuous years in the recent past.

The Indian rupee Monday signed off the last trading session of 2018 with 18 paise gains at 69.77 per dollar but clocked a 9.23 per cent fall during the year after witnessing its one of the tumultuous years in the recent past. On year-over-year basis, the rupee depreciated by a whopping 509 paise, or 9.23 per cent, as compared to 2017-end level of 63.87. Forex traders, however, said fundamentals are supportive for the rupee over the next 6-12 months amid supportive growth momentum, robust forex reserves. "Attractive real yields (net of inflation), growth momentum and robust forex reserves of $394 billion and US dollar stabilisation is likely to be positive for the INR," global financial services major Standard Chartered said in a research note. However, in the near-term, the trend in the US dollar, oil price and ensuing general elections will determine the direction for the local unit, it noted. The rupee opened higher at 69.76 per dollar as against Friday's closing level of 69.95 at the Interbank Foreign Exchange (Forex) market and hovered in a range of 69.95 and 69.74 before ending at 69.77 per dollar, showing a gain of 18 paise. The rupee has gained 58 paise in the last two trading sessions. Meanwhile, the dollar index was trading down by 0.26 per cent at 96.15 against a basket of six currencies in the late afternoon trade. Indian equity benchmarks Sensex and Nifty Monday ended the last trading session of 2018 on a sluggish note but clocked gains for the third straight year in a row amid positive cues from global markets and strengthening rupee. Both indices Sensex and Nifty snapped their three-session winning run and closed the final session of the calendar year with marginal losses. The 30-share BSE index fell 8.39 points, or 0.02 per cent, to finish at 36,068.33; while the broader NSE Nifty edged lower by 2.65 points, or 0.02 per cent, to 10,862.55. Brent crude, the international benchmark, was up 2.27 per cent at $54.42 per barrel. Foreign funds pulled out Rs 326.87 crore from the capital markets on a net basis, while domestic institutional investors bought shares worth Rs 321.98 crore Monday, provisional data showed. The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.7923 and for rupee/euro at 79.7805. The reference rate for rupee/British pound was fixed at 88.5488 and for rupee/100 Japanese yen at 63.21.

Rupee's tumultuous year ends with 9% annual loss at 69.77 a dollar

The Indian rupee — which has been in constant decline this year, it fell over 13% in 2018 — may be a top performer of 2019, analysts have said.

Tumbling oil prices have put the rupee on course for the best quarter in nearly two years.&nbsp;

The rally is expected to run well into the new year. During most of this year, elevated energy costs and a strong dollar combined to make the rupee Asia’s worst performer.

But a slump in crude oil prices and a slowdown in the pace of tightening by the federal reserve mean that rupee may resume its winning ways in 2019.

The rupee jumped nearly 2.1 per cent on Monday and Tuesday alone. This is welcome news as political uncertainties were expected to trip up the currency. Lower crude prices have, however, offset that.

Some analysts say that in the short term, the rupee will appreciate further.&nbsp;

Softening of inflation, less hawkishness from the US Federal and hopes of increased capital inflows, a consequence of falling crude oil prices, are some of the reasons which have led to a surge in the Indian rupee against the greenback.

The recent surge is quite significant because rupee was heading towards its worst year since 2013 until the appreciation in the last few days.

It's not only the US Central bank's decision that is aiding the rupee. Reserve bank of India has decided to increase liquidity infusion by 10,000 crore rupees this month. The overall liquidity infusion by RBI will be 50,000 crore rupees. Not just that. RBI has already infused 20,000 crore rupees through purchase auctions open market operations.

All of these are likely to give some respite to the Indian rupee.

The Indian rupee — which has been in constant decline this year, it fell over 13% in 2018 — may be a top performer of 2019, analysts have said. Tumbling oil prices have put the rupee on course for the best quarter in nearly two years.

The Indian rupee — which has been in constant decline this year, it fell over 13% in 2018 — may be a top performer of 2019, analysts have said. Tumbling oil prices have put the rupee on course for the best quarter in nearly two years. The rally is expected to run well into the new year. During most of this year, elevated energy costs and a strong dollar combined to make the rupee Asia’s worst performer. But a slump in crude oil prices and a slowdown in the pace of tightening by the federal reserve mean that rupee may resume its winning ways in 2019. The rupee jumped nearly 2.1 per cent on Monday and Tuesday alone. This is welcome news as political uncertainties were expected to trip up the currency. Lower crude prices have, however, offset that. Some analysts say that in the short term, the rupee will appreciate further. Softening of inflation, less hawkishness from the US Federal and hopes of increased capital inflows, a consequence of falling crude oil prices, are some of the reasons which have led to a surge in the Indian rupee against the greenback. The recent surge is quite significant because rupee was heading towards its worst year since 2013 until the appreciation in the last few days. It's not only the US Central bank's decision that is aiding the rupee. Reserve bank of India has decided to increase liquidity infusion by 10,000 crore rupees this month. The overall liquidity infusion by RBI will be 50,000 crore rupees. Not just that. RBI has already infused 20,000 crore rupees through purchase auctions open market operations. All of these are likely to give some respite to the Indian rupee.

After very troubled year, Indian rupee to be a top performer of 2019?

Analyst predict a better performance for Rupee in 2019

The <a href="http://www.wionews.com/business-%26-economy/rupee-slides-to-71-against-us-dollar--162628">rupee appreciated by 16 paise</a> to 71.74 against the US dollar in early trade on Monday at the interbank foreign exchange, amid weakness in the greenback <a href="http://www.wionews.com/south-asia/pakistans-rupee-under-pressure-amid-regional-currency-turmoil-169264">against some currencies </a>overseas and a higher opening of domestic equities.

Forex traders said, increased selling of the American currency by exporters and banks and sustained foreign fund inflows also supported the domestic currency.

At the interbank forex market, the rupee opened higher at 71.84 and rose further to quote at 71.74, showing a rise of 16 paise over its previous close.

On Friday, the rupee fell by 22 paise against the dollar to close at 71.90.

Globally, Brent crude, the international benchmark, was trading 0.13 per cent down at $60.36 per barrel.

Meanwhile, on a net basis, foreign funds bought shares worth ₹861.94 crore, while DIIs sold shares to the tune of ₹ 303.52 crores on Friday, provisional data showed.

The rupee appreciated by 16 paise to 71.74 against the US dollar in early trade on Monday at the interbank foreign exchange, amid weakness in the greenback against some currencies overseas and a higher opening of domestic equities.

The rupee appreciated by 16 paise to 71.74 against the US dollar in early trade on Monday at the interbank foreign exchange, amid weakness in the greenback against some currencies overseas and a higher opening of domestic equities. Forex traders said, increased selling of the American currency by exporters and banks and sustained foreign fund inflows also supported the domestic currency. At the interbank forex market, the rupee opened higher at 71.84 and rose further to quote at 71.74, showing a rise of 16 paise over its previous close. On Friday, the rupee fell by 22 paise against the dollar to close at 71.90. Globally, Brent crude, the international benchmark, was trading 0.13 per cent down at $60.36 per barrel. Meanwhile, on a net basis, foreign funds bought shares worth ₹861.94 crore, while DIIs sold shares to the tune of ₹ 303.52 crores on Friday, provisional data showed.

Rupee rises 16 paise to 71.74 against US dollar

The Indian rupee Tuesday plunged by a significant <a href="http://www.wionews.com/business-economy/sensex-dives-500-points-over-urjit-patels-resignation-state-poll-trends-183068">110 paise in early trade as domestic </a>equities saw heavy sell-off amid crucial state election results and the unexpected resignation of Reserve Bank Governor Urjit Patel.

Patel, who cited "personal reasons" for the decision that was effective immediately is the first governor since 1990, to step down before his term ends.

At the Interbank Foreign Exchange, the rupee opened weak at 72.42, showing a sharp plunge of 110 paise over its previous closing price.

On Monday, the Indian rupee tumbled 50 paise to close at 71.32 against the US dollar.

Besides, Patel's resignation, analysts attributed the fall in the domestic currency as a knee-jerk reaction to early state election trends that suggest a win for the opposition party in key states, ahead of the general election of 2019.

Forex traders said worries on the global trade war front, sharp sell-off in domestic equity market and rising crude prices also weighed on the domestic currency.

The Sensex opened over 500 points lower. It was trading 517.97 points, or 1.48 per cent, down at 34,441.75. In a similar movement, the NSE Nifty dropped below the 10,400 mark, slumping 144.05 points, or 1.37 per cent, to 10,344.40.

Crude oil prices surged ahead, after the OPEC has decided to cut production by 1.2 million bpd. The global benchmark, Brent crude oil was trading at USD 60.29 per barrel, higher by 0.53 per cent.

Meanwhile, foreign funds bought shares worth Rs116.22 crore from the capital markets on a net basis, while domestic institutional investors sold shares worth Rs 145.80 crore Monday, provisional data showed.&nbsp;

The Indian rupee Tuesday plunged by a significant 110 paise in early trade as domestic equities saw heavy sell-off amid crucial state election results and the unexpected resignation of Reserve Bank Governor Urjit Patel.

The Indian rupee Tuesday plunged by a significant 110 paise in early trade as domestic equities saw heavy sell-off amid crucial state election results and the unexpected resignation of Reserve Bank Governor Urjit Patel. Patel, who cited "personal reasons" for the decision that was effective immediately is the first governor since 1990, to step down before his term ends. At the Interbank Foreign Exchange, the rupee opened weak at 72.42, showing a sharp plunge of 110 paise over its previous closing price. On Monday, the Indian rupee tumbled 50 paise to close at 71.32 against the US dollar. Besides, Patel's resignation, analysts attributed the fall in the domestic currency as a knee-jerk reaction to early state election trends that suggest a win for the opposition party in key states, ahead of the general election of 2019. Forex traders said worries on the global trade war front, sharp sell-off in domestic equity market and rising crude prices also weighed on the domestic currency. The Sensex opened over 500 points lower. It was trading 517.97 points, or 1.48 per cent, down at 34,441.75. In a similar movement, the NSE Nifty dropped below the 10,400 mark, slumping 144.05 points, or 1.37 per cent, to 10,344.40. Crude oil prices surged ahead, after the OPEC has decided to cut production by 1.2 million bpd. The global benchmark, Brent crude oil was trading at USD 60.29 per barrel, higher by 0.53 per cent. Meanwhile, foreign funds bought shares worth Rs116.22 crore from the capital markets on a net basis, while domestic institutional investors sold shares worth Rs 145.80 crore Monday, provisional data showed.

Rupee plunges 110 paise against US dollar in early trade

The Indian rupee was the second-best performer in Asia, rising the most in over five years on Friday, on lower global oil prices and as China and the United States expressed optimism about resolving their bruising trade war.

A decline in oil prices and the rally in the currency also boosted bonds, which rose to their highest in nearly two months.

"After a long time, the Indian rupee is seeing a day in the sun," said Anindya Banerjee, deputy vice president, currency derivatives, Kotak Securities.

"There were massive long dollar positions, which got hit once the rupee broke the 73 level. Large corporates sold dollars and squared up long positions. The next key trigger will be the mid-term US&nbsp;polls."

The rupee rose as high as 72.4350 vs the dollar, gaining 1.44 percent during trade, the most since Sept. 19, 2013. The currency closed just off the day's high at 72.44 versus 73.4750. There was large-scale unwinding of speculative long dollar positions on the rupee, which led to the sharp rally in the currency relative to its peers in the region, traders said.

Most Asian currencies rallied on hopes after a phone call between the US&nbsp;and Chinese presidents raised hopes of a thaw in trade tensions.

The 10-year benchmark bond yield touched an intraday low of 7.75 per cent, its lowest since August 8. It closed the day at 7.78 per cent versus 7.82 per cent on Thursday.

Going ahead, traders will closely watch the results of US&nbsp;mid-term Congressional polls next week for a cue on the dollar.

Back home they will also keep an eye on the liquidity crunch in the non-banking finance companies (NBFCs). The rupee is expected to touch 72 to the dollar next week as sentiment remains upbeat, dealers said.

A series of debt default by one of the largest infrastructure companies led to massive sell-off in other companies as well in the NBFC space with investors worrying about their ability to repay their short-term debt.

Any major debt default by other companies is likely to shake investor confidence in overall financial markets in India and hit all asset classes including bonds, rupee and stocks, traders said.

The Indian rupee was the second-best performer in Asia, rising the most in over five years on Friday, on lower global oil prices and as China and the United States expressed optimism about resolving their bruising trade war.

The Indian rupee was the second-best performer in Asia, rising the most in over five years on Friday, on lower global oil prices and as China and the United States expressed optimism about resolving their bruising trade war. A decline in oil prices and the rally in the currency also boosted bonds, which rose to their highest in nearly two months. "After a long time, the Indian rupee is seeing a day in the sun," said Anindya Banerjee, deputy vice president, currency derivatives, Kotak Securities. "There were massive long dollar positions, which got hit once the rupee broke the 73 level. Large corporates sold dollars and squared up long positions. The next key trigger will be the mid-term US polls." The rupee rose as high as 72.4350 vs the dollar, gaining 1.44 percent during trade, the most since Sept. 19, 2013. The currency closed just off the day's high at 72.44 versus 73.4750. There was large-scale unwinding of speculative long dollar positions on the rupee, which led to the sharp rally in the currency relative to its peers in the region, traders said. Most Asian currencies rallied on hopes after a phone call between the US and Chinese presidents raised hopes of a thaw in trade tensions. The 10-year benchmark bond yield touched an intraday low of 7.75 per cent, its lowest since August 8. It closed the day at 7.78 per cent versus 7.82 per cent on Thursday. Going ahead, traders will closely watch the results of US mid-term Congressional polls next week for a cue on the dollar. Back home they will also keep an eye on the liquidity crunch in the non-banking finance companies (NBFCs). The rupee is expected to touch 72 to the dollar next week as sentiment remains upbeat, dealers said. A series of debt default by one of the largest infrastructure companies led to massive sell-off in other companies as well in the NBFC space with investors worrying about their ability to repay their short-term debt. Any major debt default by other companies is likely to shake investor confidence in overall financial markets in India and hit all asset classes including bonds, rupee and stocks, traders said.

Rupee rises most in five years, beats most Asian peers

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