Dollar Rise

Dollar outflows from FPIs, trade deficit probably widening with export growth slowing down, and the trade deal with US is still not on the table are the three main reasons why the rupee is falling

The brokerage is bullish on Trent, DLF, and Indian Hotels among others as it anticipates higher risk appetite for high beta plays

With the rupee appreciating 4.4 per cent since February's low, RBI is letting short dollar swaps mature while infusing liquidity through OMOs to offset the impact

The reserves had hit a record high of $705 billion in September 2024

US government data showed a higher-than-expected drawdown last week in distillate inventories, including diesel and heating oil, which fell by 2.8 million barrel

Trump last week threatened China with an extra 10 per cent duty, set to take effect on Tuesday, resulting in a cumulative 20 per cent tariff

IDFC FIRST Bank estimates Rs 2 trillion of payout by the RBI while QuantEco Research pegs the dividend around Rs 1.5 trillion for the fiscal year that ends March

Foreign investors have withdrawn Rs 22,194 crore from Indian equities this month, driven by expectations of a weak earnings season, a steady rise in the US dollar, and concerns over tariff war during Donald Trump's presidency. This came following an investment of Rs 15,446 crore in the month of December, data with the depositories showed. Foreign investors have scaled back their investments in Indian equities significantly amid global and domestic headwinds. "This exodus of foreign money from the Indian markets could be attributed to multitude of factors, such as expectation of yet another weak earning season, concerns over the tariff war under Trump's presidency, slowdown in GDP growth, still high inflation numbers and uncertainty over the commencement of the interest cut in India," Himanshu Srivastava, Associate Director, Manager Research, Morningstar Investment Research India, said. Additionally, record low level of Indian rupee, surge in US bond yields coupled with rich valuati

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The rupee had breached the 84 per dollar mark on October 11 of the current year

After two weeks of buying, FPIs turned net sellers in Indian equities this week, with a net withdrawal of Rs 976 crore amid a strengthening US dollar and steady rise in US 10-year bond yields, impacting investor sentiment. Foreign Portfolio Investors (FPIs) began the week on a positive note, investing Rs 3,126 crore in equities during the first two trading sessions (December 16-20). However, the trend reversed in the latter half of the week, with FPIs offloading equities worth over Rs 4,102 crore in the subsequent three sessions. This resulted in an overall net outflow of Rs 976 crore during the week, data from National Securities Depository Limited showed. Despite this short-term reversal, the broader December trend remains positive. FPIs have infused Rs 21,789 crore into Indian equities so far this month, reflecting continued confidence in India's economic growth potential and its resilient markets. FPIs adopted a cautious approach due to the US Fed meeting and uncertainty about

The Reserve Bank of India has recently let some short dollar positions in the overseas market expire without rolling into new contracts

The dollar index gained 0.5 per cent, on track for its best day in over a week, making greenback-priced bullion more expensive for holders of other currencies

Dollar jumped more than 2.5 per cent against the peso to its highest since July 2022 in New York afternoon trade

Dollar is reaping benefits of Donald Trump's victory in the US presidential election last week, which sent the US currency to its highest level since May 1 at 106.21 against a basket of currencies

Market participants flagged that the sensitivity of the euro to the threat of higher U.S. import tariffs was evident late Friday.

RBI's dollar buy prevent further strengthening

Focus turned to Wednesday's US inflation report as the next main indicator that could alter market pricing for the Fed's September meeting

The dollar was hanging on to gains made on Friday after upbeat spending figures led markets to trim the chance of a half-point easing from the Federal Reserve

Foreign investors have adopted a cautious stance and infused Rs 7,320 crore in the Indian equities in August owing to high valuation of stocks and the unwinding of the Yen carry trade after Bank of Japan raised interest rates. This investment was way lower than Rs 32,365 crore in July and Rs 26,565 crore in June, according to data with the depositories. While September is likely to see continued interest from FPIs, the flows would be shaped by a combination of domestic political stability, economic indicators, global interest rate movements, market valuations, sectoral preferences, and the attractiveness of the debt market, Vipul Bhowar, Director Listed Investments, Waterfield Advisors, said. According to the data with the depositories, Foreign Portfolio Investors (FPIs) made a net investment of Rs 7,320 crore in Indian equities in August. The fundamental reason for the poor FPI interest compared to the preceding two months is the high valuation in the Indian market. With Nifty ...