Page 2 - Indian Rupee

Bond yields ease after choppy trade, rupee remains under pressure

Government bond yields ended marginally lower after volatile trading, while the rupee stayed under pressure due to rising oil prices, global cues, and foreign outflows

Rupee declines 24 paise to 94.25 against US dollar in early trade

The rupee stayed on a downward track for the fifth straight day, losing 24 paise to 94.25 against the US dollar in early trade on Friday, weighed by volatile crude oil prices and an elevated US dollar, with prospects of West Asia peace talks turning hazier. Analysts said that despite a ceasefire in place between the United States and Iran, ship movement through the Strait of Hormuz remained uncertain after the US military on Thursday seized another Iranian oil tanker, intensifying the standoff and unsettling the fuel prices worldwide. President Donald Trump has also ordered the US military to "shoot and kill" small Iranian boats that deploy mines to choke traffic through the Strait of Hormuz. Unabated withdrawal of foreign funds from domestic stock markets also added to investors' worries, triggering a massive sell-off in equities and further dragging down the local currency, forex traders said. At the interbank foreign exchange market, the rupee opened at 94.25 and stayed at the s

Rupee breaches 94 to the dollar to hit a three-week low on crude surge

Rupee hits a three-week low past 94/$ as rising crude oil prices and a stronger dollar amid West Asia tensions weigh on the currency despite RBI interventions

But for the RBI's management, rupee would have been far more volatile

Global shocks from pandemics to wars are reshaping currencies and capital flows, raising questions on RBI's role and India's external stability strategy

Rupee slides 34 paise to 94.12 against US dollar during early trade

The rupee extended its losing streak for the fourth straight session, sliding past the 94 level for the second time in a month and trading 34 paise lower at 94.12 against the US dollar in early trade on Thursday, as crude oil prices surged amid a lack of progress in West Asia peace talks. The currency also remained under pressure due to massive selling of domestic equities and the withdrawal of foreign investors amid rising worldwide demand for the American currency, forex traders said. At the interbank foreign exchange market, the rupee opened at 94.04 and lost further ground to trade at 94.12 against the greenback in early deals, registering a loss of 34 paise from the previous closing level. The rupee declined 34 paise to close at 93.78 against the US dollar on Wednesday, the third straight day of fall. In the preceding two sessions, the currency has fallen by 53 paise. Facing geopolitical headwinds triggered by the war in West Asia, the domestic currency breached the crucial ..

Rupee slips to 93.80 vs dollar amid oil surge, Asian currency fall

The rupee weakened against the dollar, tracking Asian currencies and firm crude oil prices, amid geopolitical tensions and sustained foreign fund outflows

Rupee falls 0.4% to 93.49 per dollar as RBI eases derivative curbs

Governor Sanjay Malhotra had signaled on April 8 that the measures would not remain "forever," signaling a temporary approach

RBI partially eases rupee NDF curbs on banks after market stability

Market participants said the central bank now sees lower arbitrage risk after banks complied with the April 10 deadline

RBI partially withdraws restrictions on certain rupee derivative trades

The central bank had also stopped authorised dealers from entering into any FX derivative contract involving INR with their related parties

Rupee rises 13 paise to 92.78 against US dollar during early trade

The rupee appreciated 13 paise to 92.78 against the US dollar in early trade on Monday, following a sharp drop in crude oil prices amid hopes of easing geopolitical tension and the impact of the Reserve Bank's measures. Forex traders, however, said the currency is likely to stay range-bound with the situation in West Asia remaining volatile after Iran closed the Strait of Hormuz for shipping. At the interbank foreign exchange market, the rupee opened at 92.73 and moved up to 92.70 level before trading at 92.78 against the greenback in early deals, up 13 paise from the previous closing level. The rupee strengthened 28 paise to settle at 92.91 against the US dollar on Friday, a day after gaining 19 paise in the preceding session on Thursday. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.22 per cent at 98.11. Brent crude, the global oil benchmark, was trading 5.34 per cent down at USD 95.21 per barrel in futures ...

Rupee may come under pressure as Strait of Hormuz blockade continues

The Indian unit closed Friday at 92.93/$ compared to the previous close of 93.20/$, gaining 0.3 per cent

Rupee jumps as RBI restricts spot market dollar buying by oil companies

Domestic currency strengthens for second straight session as RBI curbs dollar demand from oil firms; forex reserves rise on higher foreign currency assets

Rupee rises 28 paise to 92.86 against US dollar during early trade

The rupee jumped 28 paise to 92.86 against the US dollar in early trade on Friday amid hopes of easing geopolitical tensions and positive sentiment in domestic equity markets. Buying of Indian equities by foreign investors also supported the local currency even though it stayed under pressure due to a firm dollar, forex traders said. At the interbank foreign exchange market, the rupee opened at 92.93 and gained further to trade at 92.86 against the greenback in early deals, up 28 paise from the previous closing level. On Thursday, the rupee strengthened 19 paise to settle at 93.14 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose by 0.05 per cent at 98.07. Brent crude, the global oil benchmark, was trading 1.16 per cent down at USD 98.24 per barrel in futures trade. Analysts said that crude oil prices fell below USD 100/barrel amid expectations that the crisis in West Asia would soon come to an end.

Rupee set to open higher on RBI's reported plan to curb dollar demand

The rupee will rise to 92.94-92.98 versus the US ‌dollar, traders said, having settled at 93.1950 on Thursday

Foreign investors grow more wary of India as forex curbs hit bonds

Liquidity in the NDF market, a key channel through which foreign investors manage rupee exposure, has thinned, making hedging both more expensive and harder to execute

RBI scrutinises methods banks use for unwinding rupee arbitrage trades

Following the central bank's measures, the rupee has recovered from near 95.20 per US dollar to near 92.50, before paring its rally on Monday

Rupee falls 49 paise to 93.32 against dollar in early trade amid Iran war

The rupee depreciated 49 paise to 93.32 against the US dollar in early trade on Monday, weighed down by higher crude oil prices and a firm American currency amid a volatile geopolitical situation. Renewed tension in West Asia and uncertainties on the opening of the Strait of Hormuz following inconclusive Iran-US peace talks triggered a surge in crude oil prices, while investors rushed to withdraw funds from domestic equities, putting further pressure on the Indian currency, forex traders said. At the interbank foreign exchange market, the rupee opened at 93.30 against the US dollar and lost further ground, trading at 93.32 against the greenback in early deals, down 49 paise from its previous closing level. On Friday, the rupee settled 32 paise lower at 92.83 against the US dollar. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was higher by 0.38 per cent at 98.81. Brent crude, the global oil benchmark, was trading higher by 7

Biggest currency clampdown in a decade risks backfiring for India

Jefferies estimates banks could face losses of up to ₹5,000 crore ($539 million) from the forced unwinding

Rupee rises to 92.41 against dollar, faces risks from West Asia tensions

The rupee appreciated 10 paise to 92.41 against the US dollar in early trade on Friday, even as the USD/INR pair faces risks from rising global tensions, especially the US-Iran conflict. Forex traders said the rupee is likely to see high volatility intra-day as the deadline for RBI's instructions to banks to curb their overnight positions to USD 100 million closes today. At the interbank foreign exchange market, the rupee opened at 92.58 against the US dollar, then gained ground to touch 92.41 against the US dollar in initial trade, registering a gain of 10 paise over its previous close. On Thursday, the rupee settled with a marginal gain of 3 paise at 92.51 against the US dollar. "An estimated 8085 per cent of these positions have already been unwound, which means the bulk of this supportive flow is now behind us. In simple terms, the cushion that held the rupee steady is beginning to thin, and this is where the story starts to shift," CR Forex Advisors MD Amit Pabari said. Pabar

Banks exit bulk of rupee arbitrage positions ahead of RBI deadline

RBI imposed limits on banks on ‌March 27, directing them to cap their net open positions in the rupee in the onshore market at $100 million, requiring that they comply by April 10