Page 2 - Foreign Exchange

South Korea, US reach agreement over foreign exchange deal, says Seoul

South Korean President Lee Jae Myung told US Treasury Secretary Scott Bessent in New York that the Asian country needs a foreign exchange swap in order to make the $350 bn investment

CCIL: Taking govt bond and foreign exchange markets to the masses

What NSE and BSE are to the equity market, CCIL is far more than that for the govt bond, foreign exchange and OTC derivative markets

Govt must resolve SEZ units' problems arising from definition of 'services'

SEZ service exports face DTA payment disputes, GST relief linked to strict compliance, and CBIC eases customs with a single all-India electronic bond system

Govt clears SEZ proposals of Micron, Aequs for chip, electronics units

The government on Monday said it has approved the proposals from Micron Semiconductor Technology India and Hubballi Durable Goods Cluster (Aequs Group) for setting up SEZs for manufacturing of semiconductors and electronic components. Micron will establish its SEZ facility in Sanand, Gujarat, over an area of 37.64 hectares with an estimated investment of Rs 13,000 crore, while Aequs will establish its SEZ in Dharwad, Karnataka, over an area of 11.55 hectares to manufacture electronics components with an estimated investment of Rs 100 crore. The decision followed the easing of certain SEZ (special economic zone) rules to promote the manufacturing of semiconductors and electronics components. "Subsequently, the Board of Approval for SEZs has accorded approval to the proposals received from Micron Semiconductor Technology India Pvt Ltd (MSTI) and Hubballi Durable Goods Cluster Private Ltd (Aequs Group) for setting up SEZs for manufacturing of semiconductors and electronic components, .

Pakistan still withholding $83 million in airline funds, says IATA

Despite a sharp decline from last year, Pakistan continues to withhold airline revenues as IATA urges governments to honour repatriation agreements and support global connectivity

Open market operations: The central bank's new communication policy

The approach to managing liquidity and communication policy is yet another manifestation of how the central bank has taken a fresh view on the issue

India's forex reserves rises for seventh straight week to $686.145 bn

India's forex reserves jumped USD 8.31 billion to USD 686.145 billion for the week ended April 18, the RBI said on Friday. This is the seventh consecutive week of a rise in the kitty, which had jumped by USD 1.567 billion to USD 677.835 billion in the previous reporting week ended April 11. The forex reserves had touched an all-time high of USD 704.885 billion in end-September 2024. For the week ended April 18, foreign currency assets, a major component of the reserves, increased by USD 3.516 billion to USD 578.495 billion, the data released on Friday showed. Expressed in dollar terms, the foreign currency assets include the effect of appreciation or depreciation of non-US units like the euro, pound and yen held in the foreign exchange reserves. Gold reserves increased by USD 4.575 billion to USD 84.572 billion during the week, the RBI said. The Special Drawing Rights (SDRs) were up by USD 212 million to USD 18.568 billion, the apex bank said. India's reserve position with the IM

India's forex reserves strong, can cover 11 months of imports: Sitharaman

Nirmala Sitharaman's remarks came after several opposition members raised concerns about the country's financial position, particularly regarding fluctuations in forex reserves

India's forex kitty jumps sharpest in 2 yrs, rises $15.26 bn to $653.96 bn

In the sharpest jump in over two years, the country's foreign exchange reserves increased by USD 15.267 billion to USD 653.966 billion during the week ended March 7, the RBI has said. The overall reserves had dropped by USD 1.781 billion to USD 638.698 billion in the previous week. The reserves had been on a declining trend recently due to revaluation along with forex market interventions by RBI to help reduce volatilities in the rupee. The forex reserves had increased to an all-time high of USD 704.885 billion at end-September 2024. The sharp rise during the week under review is being attributed to the USD 10 billion forex swap undertaken by the central bank on February 28, when it bought dollars against rupee to inject liquidity in the system. During the week, foreign currency assets, a major component of the reserves, increased by USD 13.993 billion to USD 557.282 billion, the data released on Friday showed. Expressed in dollar terms, the foreign currency assets include the eff

Reduction in coal import saves around ₹42,315 cr of foreign exchange

India's coal import dropped by 8.4 per cent to 183.42 million tonnes in the April-December period of the current fiscal, resulting in foreign exchange savings of around Rs 42,315 crore. The country's coal import was 200.19 MT in the corresponding period of the previous fiscal. "Coal imports...during April to December 2024 fell by 8.4 per cent, totalling 183.42 million tonnes (MT), compared to 200.19 MT in the same period of the previous fiscal year. This reduction resulted in foreign exchange savings of approximately USD 5.43 billion (Rs 42,315 crore)," the coal ministry said in a statement. The non-regulated sector, excluding the power sector, experienced a more significant decline, with imports dropping by 12.01 per cent year-on-year. Although coal-based power generation grew by 3.53 per cent from April to December 2024 over the previous year, imports for blending by thermal power plants decreased by 29.8 per cent. The government has implemented several initiatives, including ..

Maha Kumbh caused inadvertent cash leakage in system, says SBI report

RBI's recent swap of $10 billion has calmed market participants' frayed nerves

Rupee reverses losses, ends flat at 87.2 per dollar on likely RBI support

The rupee opened six paise weaker against the greenback, tracking the rise in the dollar index

Net short position of RBI's forward book swells to $67.9 billion

REER moderates to 104.82 in January

Adani Enterprises Q3FY25 results: Net profit plunges 96.9% to Rs 58 crore

Profit before interest, depreciation, and tax (PBIDT) for the company was flat at Rs 3,723 crore on a year-on-year (Y-o-Y) basis

Rupee rises 18 paise to 86.26 against US dollar in early trade today

Rupee appreciated 18 paise to 86.26 against the US dollar in morning trade on Friday, supported by positive domestic equities and soft American currency index. Forex traders said weak crude oil prices and positive domestic markets supported the local unit, while sustained foreign fund outflows weighed on the local unit. Traders further noted that the upcoming Union Budget will play a crucial role in shaping market sentiment and the rupee's trajectory. At the interbank foreign exchange, the rupee opened at 86.31 and touched 86.26 against the US dollar, registering a rise of 18 paise from its previous close. The local unit also touched 86.33 against the US dollar initial trade. On Thursday, the rupee declined 9 paise to settle at 86.44 against the US dollar. The rupee has shown signs of resilience, appreciating over the past two trading sessions due to a weakening dollar. Moreover, on a positive note, upcoming inflows from fundraising activities by IREDA of USD 570 million are expec

RBI sold record $20.2 billion in November to back rupee amid FPI outflows

Forward book dollar deficit ballooned to $58.9 bn

Ethanol 2.0 policies key for India to match Brazil as a biofuel superpower

Ethanol Blended Petrol (EBP) programme 2.0 is essential because the International Energy Agency forecasts India to be the biggest contributor to global oil demand in the years ahead

Rupee falls 9 paise to 85.61 against US dollar in early trade today

The rupee dropped 9 paise to 85.61 against the US dollar in early trade on Tuesday, weighed down by significant strengthening of the American currency in the overseas market and a muted trend in domestic equities. Forex traders said the rupee has been under continued pressure amid the Federal Reserve's cautious stance and the "Trump factor" driving up the dollar index (DXY) and US 10-year yields. Additionally, on the domestic front, slowing growth, widening trade deficit, and persistent foreign fund outflows have further fueled the rupee's depreciation. At the interbank foreign exchange, the rupee opened on a weak note at 85.54 then fell further to 85.61 against the American currency, registering a fall of 9 paise over its previous close, on month-end dollar demand from importers and oil marketing companies. On Monday, the rupee dropped 4 paise to 85.52 against the US dollar. According to Anil Kumar Bhansali, Head of Treasury and Executive Director Finrex Treasury Advisors LLP, th

Dr Manmohan Singh trusted India's trade capacity to compete at global level

He introduced a dual exchange rate mechanism in February 1992 and unified exchange rate mechanism in February 1993, effectively engineering a further devaluation of about 30 per cent

Rising pressure on rupee clouds RBI's February rate cut prospects

India's foreign exchange reserves have declined by $50 billion this quarter as of December 13, according to the latest RBI data