‘Foreign Exchange Market’ — 388 News Result(s)

Rupee Breaches 63/Dollar, Ends at 62.97 on Weak Stocks

On March 13, 2015 19:09 (IST)

It crossed the 63-level after two months as it hit a low of 63.0025 today. Previously, it had logged an intra-trade low of 63.20 on January 8, 2015.

Markets are seen taking opening cues from US non-farm payrolls data due on Friday.

The RBI also said the relaxation would provide flexibility to eligible domestic individuals who enter into foreign currency-rupee swap contracts to hedge exchange rate or interest rate risk exposure.

The rupee recovered after sliding to 62.29 per dollar at the interbank foreign exchange due to rise in the greenback’s value against other currencies overseas in early trade.

The rupee plunged below the 62 level by falling 36 paise against the US dollar. The rupee fell to 62.06 against the US dollar in early trade at the Interbank Foreign Exchange due to fresh demand for the American currency from importers.

The rupee resumed lower at 61.82 per dollar as against the yesterday’s closing level of 61.71 per dollar at the Interbank Foreign Exchange (Forex) Market on initial dollar demand.

The rupee gained 15 paise to 63.42 against the dollar today at the Interbank Foreign Exchange on fresh selling of the US currency by exporters.

All Indian financial institutions with exposure to the US will have to register by Wednesday with the American tax authorities to avoid a hefty penalty tax of up to 30 per cent under the new Foreign Accounts Tax Compliance Act (FATCA).

To remove any regulatory hurdle coming in way of foreign investors putting money in the newly created Real Estate Investment Trust (REIT) structure, the government has proposed allowing overseas investments in this space within FEMA regulations.

The rupee recovered sharply on Wednesday, bouncing back to 63.57 per dollar from the day’s low at 63.89. The partially convertible currency had closed at 13-month low of 63.53 on Tuesday. The RBI was spotted intervening in the spot foreign exchange m.

Asian central banks have ramped up their intervention in currency markets to stem the selloff roiling emerging markets, testing the notion that the region is better placed to handle a market rout than during its 1997-1998 financial crisis.

The rupee posted its biggest single-day fall in more than four months, tracking steep losses in emerging market currencies while domestic data showing an unexpected contraction in industrial output sparked concerns about economic growth.

Falls also tracked lower Asian shares as the slide in oil added to global growth concerns. Adding to that was heavy selling by foreign investors in domestic derivatives on Wednesday, who unwound positions worth Rs 1,915 crore ($307.3 million), exchan.

Overseas investors have pumped in a staggering amount of over Rs 1 lakh crore into the Indian stock market since the beginning of the year, primarily on account of governments reform agenda.

Overseas investors have poured in over $4 billion in the Indian capital markets this month, taking total inflows to over $40 billion since January.

The move by the Securities and Exchange Board of India (Sebi) to align rules for offshore derivative instruments (ODIs) with new foreign investment norms raises worries about flows.

According to the SEBI statement on Monday, ODIs will now have to be consistent with India’s new foreign investment requirements, including that an investor be from a country whose central bank is a member of the Bank for International Settlements.

The rupee strengthened on Monday, tracking emerging market currencies as the dollar weakened following weaker-than-expected US jobs data, although caution ahead of consumer inflation data later this week tempered some of the gains.

Foreign investors have pumped in close to Rs 5,200 crore in the Indian capital markets in first week of the month on positive global cues coupled with the government’s reforms agenda.