Page 3 - Exchange Rates

Rupee drops by 52 paise to 74.87 against US dollar amid lockdown fears

The rupee plunged by 52 paise to close at 74.87 (provisional) against the US dollar on Monday amid a lacklustre trend in the domestic equities as investors fretted over the prospects of lockdown

Rupee zooms 58 paise to settle at 74.35 against US dollar amid equity gains

Improving risk appetite also helped

Rupee gains 12 paise to close at 74.93 against US dollar amid equity gains

Easing crude oil prices helped too

How RBI's currency operations are spiking forward premia across tenures

From about 3.5 per cent at the start of December to 6 per cent now, three-month forwards rates are most affected

The case for fixed exchange rates

Once the US dollar replaces the SDR as the single reserve currency, the dollar could qualify to be a common currency for a select number of countries

Getting exchange rates right

Calculating them more accurately could reduce the risk of misguided economic policies

Volatile exchange rate slows dollar bond issuance by Indian companies

While dollar bond issuance in 2017 was at $13.11 billion, it dropped to $6.09 billion in 2018

Exchange rates, jobs & external vulnerability

Before our political masters talk of a sovereign wealth fund, we need a far better balance between external assets and liabilities