Anjali Kumari
Anjali Kumari
Market participants said that the local currency might gradually depreciate to Rs 84 per dollar in near term
Most respondents expect rate cuts from Dec; change in stance unlikely
The rupee settled at Rs 83.75 per dollar, against Rs 83.73 per dollar on Thursday
The first green bond auction of this financial year was cancelled on May 31 for similar reasons
Lender was looking to mop up Rs 3,000 crore, but bids totalled only Rs 1,390 crore
Recently, SGB investors have expressed concerns due to market fluctuations and the government's decision to lower the customs duty on gold which may result in reduced returns on their investments
Inflows into shorter tenure bonds likely to be boosted
BFSI sector, governed by well-defined regulations, is relatively protected from such attacks
In July so far, the rupee has depreciated by 0.4 per cent, against 0.1 per cent in June
Currently, foreign investors hold around $1 billion worth of existing 30-year bonds
But some see it hitting 84/$ tracking Asian peers
According to analysts, banks with an LCR exceeding 130 per cent are relatively comfortable, though not many lenders boast such robust ratios
The rupee remained under pressure during the week due to persistent outflows from domestic equities, said dealers
The previous record high reserve was $667 billion in the week ended July 12
In the Union Budget for the previous financial year 2023-24, it was announced that a 10 per cent TDS on interest payments would be applied to listed bonds (debentures) starting April 1, 2023
Rao said that such events can destroy assets funded by institutional finance, thereby harming the financial health of these institutions
Rupee declines to new low over fall in domestic equities
Hardships caused to poor and low-income consumers can be handled through DBT, it says
'Inadequate management' of such relationships can expose regulated entities to reputational damage, says M Rajeshwar Rao
Market participants said that the Indian currency did not depreciate further as the Reserve Bank of India intervened in the foreign exchange market by selling dollars