Interbank traders turn focus to dollar-rupee forwards as spot treads water
The rupee has hovered in the 85.30 to 86.02 range against the U.S. dollar over June so far with its 1-month realised volatility declining to 4.5%, the lowest in about six weeks.
Dollar-rupee forward premiums, meanwhile, have witnessed sharper moves, sparked by the Reserve Bank of India's outsized rate cut last week and changes in expectations of U.S. rate cuts.
The 1-year dollar-rupee implied yield fell to its lowest in nearly one year earlier this month while the 1-month forward premium has fallen about 4 paisa to its lowest level since November.
The fall in dollar-rupee forward premiums leaves the rupee vulnerable to further depreciation by reducing the currency's "carry trade" appeal and diminishing the incentive for exporters to hedge receivables, analysts said.
Speculative activity has picked up on forward premiums as markets are "largely playing the range (on spot USD/INR)," a trader at a large private bank said.
To be sure, large moves in global foreign exchange markets could spur the dollar/rupee to break out of its prevailing range, said Apurva Swarup, vice president at Shinhan Bank India.
If the dollar index breaks below the 98 level, that could unlock room for rupee appreciation from prevailing levels, Swarup said.
On Thursday, the rupee was nearly flat against the U.S. dollar at 85.5125 as of 11:00 a.m. IST.
Asian currencies were mostly stronger with the offshore Chinese yuan rising 0.2% as the latest trade truce between Washington and Beijing raised hopes that the world's two largest economies could avoid escalations in their tariff row. (Reporting by Jaspreet Kalra; Editing by Mrigank Dhaniwala)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Economic Times
40 minutes ago
- Economic Times
Grok Imagine goes live on Elon Musk's X platform
Elon Musk's artificial intelligence company xAI has officially rolled out Grok Imagine, a text-to-video generation tool integrated within the X platform (formerly Twitter).The feature, which was previously being tested with a limited group of users, is now more widely accessible. According to Musk, users can update their X app and request access to the waitlist by navigating to the 'Grok' section in settings and selecting 'Imagine.' 'Grok Imagine is still in early beta, so will improve almost every day,' Musk wrote in a post on X, adding that real-time improvements are expected as the model scales. Grok Imagine allows users to generate videos and still images from text prompts, with videos of up to six minutes in duration. In addition, it can animate static images into moving visuals with synchronized sound, offering creators a more seamless workflow without needing external tools or software. Early users have compared the feature to Twitter's Vine, the once-popular short-form video app that was discontinued in 2017. However, Grok Imagine appears to be aimed at much broader use cases—including entertainment, education, and meme culture—leveraging generative AI for creative expression. The feature is available both via the standalone Grok app and within the main X platform. According to a post by the official Grok handle, full public rollout is expected in phases beginning October 2025. The launch follows xAI's recent disclosure that it is also working on a kid-friendly version of its Grok chatbot, suggesting the company is eyeing wider demographic adoption as it refines its AI capabilities. Meanwhile, xAI is in the process of preparing a fresh funding round, which could value the company between $170 billion and $200 billion, according to a July 12 Reuters report. The company expects to generate over $13 billion in annual earnings by 2029, as per financial projections shared by Morgan Stanley and reported by Bloomberg in June. With Grok Imagine now live, Musk appears to be positioning X as not just a social media platform but an AI-powered content engine, blending user-generated media with proprietary infrastructure and models built by xAI.
Time of India
an hour ago
- Time of India
Kuwait introduces new e-Visa for four visa categories; no embassy visit needed
In a recent update, Kuwait has officially launched and went live with its complete online e‑Visa platform for four visa categories, including tourist, family, business, and official. This is a big leap forward in the country's digital transformation under its Vision 2035 initiative. With this new change, citizens of several Western, Asian, and GCC‑residents will be able to complete the entire visa process remotely. They won't even have to step inside an embassy for a visa. Let's have a closer look at the whole process: Fully Online visa types: Now people can apply visa under: Tourist visas : This visa remains valid up to 90 days. It is perfect for those wanting to explore Kuwait. Family visas : This will allow close relatives of Kuwaiti residents to visit for up to 30 days. Business visas : This visa is also for up to 30 days. Now this one is perfect for professionals attending meetings, trade events or negotiations. Official visas : This is perfect for diplomats and government delegations on formal missions. Eligibility Citizens from over 50 countries across Europe, North America, Australia, Japan, and numerous Asian nations are eligible. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 22 Illustrations of a Husband and Wife in Everyday Life Watch More Undo GCC resident expatriates who have held valid residency for at least six months. It includes professions such as lawyers, doctors, engineers, teachers, journalists, and business managers. GCC citizens enjoy visa‑free entry using their national ID cards. They do not require any visa. How to apply Interested people can register via the Ministry of Interior's official portal (e.g. or Kuwait Visa platform linked from government websites). They need to: Create an account Log in with government credentials Choose desired visa category Upload required documents (passport bio‑page, photo, travel itinerary, accommodation or invitation, sponsor or official letter where required) Pay the fee online (typically USD 10–30 or about 3 KWD depending on nationality and category) Submit and track the application by reference code or passport number You'll receive the approved e‑Visa via email. You can get it printed or it is usable on a mobile device upon arrival. The processing usually takes between 1 and 3 business days. Delay is possible during peak travel season. Things to Remember Valid passport Provide clear documents—especially photos meeting portal specifications. Apply at least one week before travel. For family and business visas, make sure Kuwait‑based sponsors are aware of their responsibilities. If e‑Visa is refused, you may still be eligible for visa-on-arrival depending on nationality and category. The best part of this is that people don't require embassy visits. The paperwork has also reduced and its speedy approvals. With this new introduction, Kuwait aims to boost inbound tourism, attract international business, and strengthen political relationships with other nations. Get the latest lifestyle updates on Times of India, along with Friendship Day wishes , messages and quotes !
New Indian Express
2 hours ago
- New Indian Express
Textiles, auto components, tyres, chemicals, diamonds worst-hit in India-US tariff war: Icra
MUMBAI: Stating that the 25% tariff on Indian exports to the US from August 7 leaves the country at a relative disadvantage, a rating agency has warned that unless a bilateral trade agreement is swiftly concluded, the current tariff structure can significantly alter the export trajectory this fiscal and beyond. High sectoral dependence on US markets, coupled with tariff asymmetry, poses a serious challenge to India's trade competitiveness, it added. In a jolt to the bilateral trade dynamics, US president Donald Trump has imposed a 25% reciprocal tariff on Indian goods effective August 7. This tariff, accompanied by an additional unspecified penalty on India's crude and defence imports from Russia, is significantly higher than tariffs on other Asian peers like Vietnam (20%), Indonesia (19%), and Japan (15%), placing it at a relative disadvantage. In a sector-wise analysis of the impact of these tariff tantrums, domestic rating agency Icra said this will have a 20 bps impact on the FY26 growth -- down from 6.2% to 6%. Despite a robust trade surplus with the US, which rose to $41 billion in FY25 from $21 billion in FY15, India's competitive edge could be eroded in the absence of a bilateral trade resolution, it warned. The worst-hit sectors include textiles, auto components, tyres, chemicals, agrochemicals, and cut & polished diamonds. For instance, the US accounts for 27% of India's auto component exports, and around 36% of cut & polished diamonds exports are directly routed to the US. Cut & polished diamonds also face indirect risks due to potential trans-shipment tariff enforcement on intermediaries like Dubai or Israel. Tyre exports to the US (17% of total) and agrochemical exports (18%) are similarly exposed, as domestic firms now face tariff disadvantages relative to key regional competitors.
