Page 3 - Forex Market

RBI bought net $6.93 billion in spot forex market in July: Bulletin data

RBI's net outstanding forward sales stood at $9.1 billion as of end-July, compared with a net sales of $15.84 billion at the end of the previous month, the data showed

Here's why everyone is talking about Japanese Yen and Carry Trade

Japanese Yen, a favourite for carry trade, has appreciated by 10 per cent in the last three weeks; thus, prompting fears of large scale unwinding and its ripple effects on global markets

RBI bought net $13.25 bn in spot forex market in March, shows bulletin

The RBI said it purchased $14.84 billion and sold $1.59 billion during the month. In the previous month, it had bought a net $8.56 billion in the spot market

India sees forex reserves as main tool to manage bond index inflows

The Reserve Bank of India plans to absorb the inflows and match the outflows using its near-record high $642 billion reserves

Indian forex, bond investors eye developments in Middle East, US inflation

The currency fell 0.1 per cent in the week to end at 83.47, and the losses would have been larger had it not been for the Reserve Bank of India's (RBI) intervention

Forex reserves kitty jumps $6.55 billion to $625.63 billion: RBI data

India's forex reserves jumped USD 6.55 billion to USD 625.626 billion for the week ended March 1, the Reserve Bank of India said on Friday. In the previous reporting week, the overall reserves had risen by USD 2.975 billion to USD 619.072 billion. It can be noted that in October 2021, the country's forex kitty had reached an all-time high of USD 645 billion. The reserves took a hit as the central bank deployed the kitty to defend the rupee amid pressures caused majorly by global developments since last year. For the week ended March 1, the foreign currency assets, a major component of the reserves, increased by USD 6.043 billion to USD 554.231 billion, the data said. 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 569 million to USD 48.417 billion during the week, the RBI said. The Special Drawing Rights (SDRs

RBI's new rule on exchange-traded rupee derivatives confuses brokers

Reserve Bank of India (RBI) in a Jan. 5 circular said that stock exchanges may offer forex derivative contracts involving the rupee to users "for the purpose of hedging contracted exposure"

RBI lifting curbs on forex non-deliverable forward arbitrage by banks

Arbitrage trades allow investors to benefit from the price differences of securities in different markets but can exaggerate price trends

Rupee opens on flat note against US dollar in early trade on Wednesday

The rupee opened on a flat note and appreciated 1 paisa to 83.14 against the US dollar in the morning session on Wednesday, amid a muted trend in domestic equities. Forex traders said the rupee is trading with a slight negative bias amid selling pressure from foreign investors. At the interbank foreign exchange, the rupee opened at 83.15 against the dollar, then rose to 83.14, registering a rise of 1 paisa over its previous close. In the initial trade, the rupee touched an early low of 83.16 against the US dollar. On Tuesday, the rupee had settled at 83.15 against the US dollar. "Rupee was weakened on Tuesday as FPIs withdrew Rs 3,115 crores from share markets after a 1.5 per cent fall in indices. Wednesday's opening may pave the way to a move beyond 83.20 although in-flows are still there to counter any major demand from FPIs," said Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP. Meanwhile, Brent crude futures, the global oil benchmark

Rupee rises 6 paise to 83.08 against US dollar in third straight session

The rupee stayed on upward track for the third straight session and rose 6 paise to 83.08 against the US dollar in early trade on Tuesday amid a weak american currency and favourable crude oil prices. A positive cue from domestic equity markets and sustained buying by foreign institutional investors also supported the Indian currency, forex traders said. At the interbank foreign exchange, the domestic currency opened strong at 83.07 and rose to the level of 83.04 against dollar in initial deals. The local unit then traded at 83.08 against the greenback, registering a rise of 6 paise from its previous close. The domestic currency settled 1 paisa higher at 83.14 on Monday, a day after gaining 9 paise on Friday. Analysts said investors will keep a close watch on domestic inflation numbers as well as the data from the US to be released later this week. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.07 per cent lower

Rupee rises 3 paise to 83.37 against US dollar during early trade

The rupee appreciated 3 paise to 83.37 against the US dollar in early trade on Monday, amid sustained inflow of foreign funds and bullish sentiment in the domestic equity market. An upward movement in crude oil prices, however, weighed on the Indian currency, according to forex traders. At the interbank foreign exchange market, the local unit opened at 83.39 against the dollar and rose to 83.37, up 3 paise from its previous close. On Friday, the rupee depreciated 4 paise to close at 83.40 against the US dollar. Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial Services, said that investors will keep a close eye on monetary policy decisions from US Federal Reserve and other central banks to be announced this week. "... the commentary from the (US Fed) Governor will be important to watch and gauge a view for the major crosses. Today, volatility could remain low as no major economic data is expected to be released from the US. We expect the USD-INR (spot) to trade

Master Direction part of Initiative for forex market risk management: Das

India's foreign reserves rise by $6 billion

India's forex exchange reserves rise to 11-week high of $595 billion

The currency settled at 83.3675 on Friday, a record closing low, and was down 0.1% for the week

Reserve Bank adds 19 unauthorised forex trading platforms in 'Alert List'

The Reserve Bank on Friday updated the 'Alert List' of unauthorised forex trading platforms by adding 19 more entities, including FX SmartBull, Just Markets, and GoDo FX, taking the total to 75. The Alert List contains the names of entities, which are neither authorised to deal in forex under the Foreign Exchange Management Act, 1999 (FEMA) nor to operate electronic trading platform (ETP) for forex transactions under the Electronic Trading Platforms (Reserve Bank) Directions, 2018. The other entities added to the list are Admiral Market, BlackBull, Easy Markets, Enclave FX, Finowiz Fintech, FX SmartBull, Fx Tray Market, Forex4you, Growing Capital Services, and HF Markets. Other platforms are HYCM Capital Markets, JGCFX, PU Prime, Real Gold Capital, TNFX, Ya Markets, and Gate Trade. In a statement, the Reserve Bank said the Alert List also contains names of entities/platforms/websites which appear to be promoting unauthorised entities. "The list is not exhaustive," it said and adde

Rupee appreciates 6 paise to 83.32 against US dollar in early trade

The rupee recovered from its all-time low levels and appreciated 6 paise to 83.32 against the US dollar in morning trade on Tuesday, tracking the weakness of the American currency in the overseas market and positive domestic equities. Forex traders said the rupee fell to fresh record lows on Monday despite broad weakness in the dollar against its major crosses on suspected importer-related buying. At the interbank foreign exchange, the rupee opened at 83.33, then touched 83.32 against the American currency, higher by 6 paise over its previous close. On Monday, the rupee declined by 12 paise to settle at its all-time low of 83.38 against the US dollar. Investors will focus on the existing home sales data from the US and weaker-than-expected numbers could keep the dollar weighed down. We expect the USDINR (Spot) to trade sideways and quote in the range of 83.05 and 83.40, Gaurang Somaiya, forex and bullion analyst at Motilal Oswal Financial, said. Meanwhile, the dollar index was tra

Forex trade impacted by platform outage; RBI asks for root cause analysis

Trading in the forex market was impacted on Friday as one of the platforms suffered an outage. One of the electronic trading platforms suffered an outage around midday during the trading hours due to which players were unable to log into the system, according to sources. Orders dried up as a result of this, they said, adding that this created a heightened uncertainty in the forex market, causing excess volatility in the Indian rupee, which was avoidable. According to market participants, the Rupee, which has been range-bound around 83.30 to the dollar for many weeks lost some ground as a result of the volatility, depreciating till 83.50 intra-day before closing at 83.34 at the end of the trading session. A source said the Reserve Bank of India has asked the platform to undertake a "root cause analysis" and "ascertain whether it was a system failure or human error that led to the disruption" on the platform. The RBI has also sought an explanation from the platform to understand the

Rupee ends flat as Reserve Bank's support counters month-end dollar demand

The rupee closed at 83.25, little changed from its close at 83.2450 in the previous session. The currency traded in a narrow 83.2450 to 83.27 range in the spot session

India's forex reserves resume losing streak, fall to $583.53 billion

The RBI intervenes in both the spot and forwards markets to prevent runaway moves in the rupee

RBI's $5 billion swap maturity causes flutter, but no major turbulence

One of the ways a bank can do that is by accessing the overnight swap market to borrow dollars vis-a-vis the rupee. A fall in the swap rate means there is a high demand for dollars

Government bond and forex market to remain open on Thursday, Friday

The auction of government-dated securities scheduled on Friday, will now be conducted on Thursday, with settlement on Friday