Latest news with #AbhishekGoenka
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Business Standard
2 days ago
- Business
- Business Standard
Rupee remains steady due to likely RBI intervention amid tariff tensions
The rupee remained steady on Thursday on likely intervention by the Reserve Bank of India (RBI) in the foreign exchange market via dollar sales after the United States slapped an additional 25 per cent tariff on exports of Indian goods yesterday, said dealers. India now faces the highest US tariff of 50 per cent, at par with Brazil. This additional tariff is applicable from 28 August. The local currency settled at 87.71 per dollar, almost flat against the previous close of 87.74 per dollar. 'USDINR needs to close above the 87.95–88.00 per dollar zone to confirm that a fresh up-move is emerging. However, considering the recent moves, it appears that the central bank is committed to preventing the rupee from depreciating further,' said Abhishek Goenka, chief executive officer at IFA Global. US President Donald Trump imposed an additional 25 per cent tariff on Indian goods, citing India's ongoing imports of Russian oil. The move effectively raises the total duty on select Indian exports to 50 per cent. 'The economic impacts of the tariffs are a concern, with potential downward revisions to India's GDP growth forecast due to the heightened trade tensions. Thus, the Indian rupee today is under pressure but remains steadied by central bank intervention and sectoral dynamics in the Indian economy,' said Anil Kumar Bhansali, head of treasury, Finrex Treasury Advisors. The US accounted for around 4 per cent of India's crude oil imports (in volume terms) in FY25, increasing from around 1 per cent in FY24, while Russian imports constitute around a third of Indian oil imports, according to a report by Goldman Sachs. 'The RBI intervened, while foreign investors were on the selling side,' said a dealer at a state-owned bank. 'They are intervening in the non-deliverable forwards (NDF) market too, otherwise the rupee would have fallen below 88 per dollar in the previous week,' he added. The rupee has depreciated by 2.55 per cent in the current financial year, whereas it has witnessed 2.39 per cent depreciation in the current calendar year. Meanwhile, the RBI conducted another overnight variable rate reverse repo (VRRR) auction as the surplus liquidity in the banking system continues to hover around ₹4 trillion. On Wednesday, the net liquidity in the banking system was in a surplus of ₹3.90 trillion, according to the latest data from the RBI. The central bank received bids worth ₹49,055 crore at the auction against the notified amount of ₹50,000 crore. The RBI accepted the bidding amount at a cut-off rate of 5.49 per cent. Consequently, the weighted average call rate (WACR), the operating target of monetary policy, settled at 5.43 per cent on Thursday, against the previous close of 5.33 per cent. The RBI's VRRR operations are aimed at absorbing surplus liquidity from the system and anchoring short-term rates closer to the policy repo rate.
Reuters
2 days ago
- Business
- Reuters
Rupee holds firm against Trump tariffs on RBI intervention expectations
MUMBAI, August 07 (Reuters) - The Indian rupee shrugged off U.S. President Donald Trump's additional tariffs on Indian goods on Thursday, as traders and analysts bet on central bank support to steady the currency. The rupee closed largely flat at 87.7025 against the U.S. dollar, up 0.03% from 87.7325 on Wednesday. U.S. President Donald Trump followed through on his threat and imposed an additional 25% tariff on Indian goods over continued purchases of Russian oil. "…Considering the recent moves, it appears that the central bank is committed to preventing the rupee from depreciating further," said Abhishek Goenka, founder and chief executive of IFA Global. Meanwhile, the Indian central bank resumed its intervention in the non-deliverable forwards (NDF) market last week, marking a return to a tool it had mostly avoided so far under governor Sanjay Malhotra. The RBI stepped in on Tuesday to prevent the rupee from breaching its record low of 87.95, traders said. Forex reserves dropped over $9 billion last week, likely due to spot and NDF market intervention. The rupee slid 1.2% in the week to Aug. 1, its steepest fall in nearly three years. Other Asian currencies also shrugged off Trump's tariff threats. The South Korean won advanced 0.3%, while the Indonesian rupiah climbed 0.4%. Dollar index was flat at 98.184 as of 1017 GMT, despite weak U.S. jobs data raising expectations for a rate cut in September in the world's largest economy. India's equity benchmarks, the BSE Sensex (.BSESN), opens new tab and Nifty 50 (.NSEI), opens new tab both closed 0.1% higher despite Trump's announcements.
Business Recorder
4 days ago
- Business
- Business Recorder
RBI intervention shields Indian rupee from record low after Trump tariff threat
MUMBAI: The Indian rupee extended its decline on Tuesday on the back of escalating trade tensions with the United States, although likely central bank intervention prevented the currency from breaching record low levels. The rupee closed at 87.8000 to the U.S. dollar, down 0.2% from Monday's close of 87.6550. The local currency fell to a low of 87.8850 on Tuesday, just shy of an all-time low of 87.95 hit in February. The Reserve Bank of India helped absorb some tariff-related pressure on the rupee through interventions conducted by state-run banks, a trader at a state-owned lender said. U.S. President Donald Trump on Monday again threatened to substantially raise tariffs on Indian goods, citing the country's continued purchases and resale of Russian oil, after announcing a surprise 25% tariff on Indian imports last week. In response, India's foreign ministry said it would take 'all necessary steps' to protect national interests and economic security, escalating a trade row between the two countries. Indian rupee extends slide on foreign outflows, dollar demand from oil firms 'As fears of more expensive crude oil loom, the Indian rupee stands at a crossroads amid rising geopolitical tensions,' said Abhishek Goenka, chief executive of IFA Global. Traders and analysts said that persistent foreign outflows may accelerate, putting further strain on the rupee if talks stall. The RBI's interest rate decision on Wednesday could also influence the currency's trajectory. Meanwhile, Asian currencies traded mixed as the dollar recouped some of its losses on Tuesday. The Philippine peso dropped 0.6% after inflation hit the lowest in nearly six years. The Malaysian ringgit gained more than 0.2%, while the Indonesian rupiah was little changed.
Economic Times
4 days ago
- Business
- Economic Times
RBI intervention shields rupee from record low after Trump tariff threat
The Indian rupee extended its decline on Tuesday on the back of escalating trade tensions with the United States, although likely central bank intervention prevented the currency from breaching record low levels. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads The Indian rupee extended its decline on Tuesday on the back of escalating trade tensions with the United States, although likely central bank intervention prevented the currency from breaching record low rupee closed at 87.8000 to the U.S. dollar, down 0.2% from Monday's close of 87.6550. The local currency fell to a low of 87.8850 on Tuesday, just shy of an all-time low of 87.95 hit in Reserve Bank of India helped absorb some tariff-related pressure on the rupee through interventions conducted by state-run banks, a trader at a state-owned lender said.U.S. President Donald Trump on Monday again threatened to substantially raise tariffs on Indian goods, citing the country's continued purchases and resale of Russian oil, after announcing a surprise 25% tariff on Indian imports last response, India's foreign ministry said it would take "all necessary steps" to protect national interests and economic security, escalating a trade row between the two countries."As fears of more expensive crude oil loom, the Indian rupee stands at a crossroads amid rising geopolitical tensions," said Abhishek Goenka, chief executive of IFA and analysts said that persistent foreign outflows may accelerate, putting further strain on the rupee if talks RBI's interest rate decision on Wednesday could also influence the currency's Asian currencies traded mixed as the dollar recouped some of its losses on Tuesday. The Philippine peso dropped 0.6% after inflation hit the lowest in nearly six years. The Malaysian ringgit gained more than 0.2%, while the Indonesian rupiah was little dollar index was down 0.3% at 98.967, as of 1007 GMT.
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Business Standard
22-05-2025
- Business
- Business Standard
Rupee drops to one-month low on FPI selling and stop-loss triggers
The rupee on Thursday depreciated to a one-month low against the dollar, following foreign outflows from domestic equities coupled with stop-losses being triggered at the 85.70 per dollar mark, said dealers. The local currency depreciated to as much as 86.11 per dollar during the day before settling at 86 per dollar—the weakest level since 11 April this year. On Wednesday, the rupee had settled at 85.64 per dollar. 'Today's move in USDINR was primarily due to stop-losses getting triggered above the 85.70 level and likely outflows from domestic equities (FII/FPI selling). However, the broad trend is that of dollar weakness,' said Abhishek Goenka, chief executive officer at IFA Global. Dollar bids from foreign banks and state-owned banks further weighed on the rupee during the day, said dealers. 'In the near term, the rupee may depreciate towards 86.50–86.60. However, a medium-term appreciation remains possible, supported by a weaker dollar and strong Indian macro fundamentals,' said the treasury head at a private bank. On the other hand, government bond yields continued to fall on expectations of a record surplus transfer by the Reserve Bank of India (RBI) to the government for FY25. The yield on the benchmark 10-year bond softened by 1 basis point to 6.24 per cent on Thursday. The yield on the new 10-year government bond softened to 6.20 per cent during the day before inching up to 6.23 per cent, as traders sold the bond at a profit after the initial fall in yields. On Wednesday, the new 10-year bond had settled at 6.21 per cent. The benchmark yield has softened by 33 basis points so far in the current financial year. 'There was profit booking in the last hour,' said a dealer at a primary dealership. 'Mainly PSU banks were booking profit today (Thursday),' he added. Market participants said that foreign portfolio investors are expected to continue their selling spree given the narrowing spread between the domestic 10-year government bond yield and the benchmark US 10-year bond yield. The spread narrowed to a 20-year low of 164 basis points on Thursday, as yields on US Treasuries surged amid concerns over the fiscal deficit. According to Bloomberg data, this is the narrowest spread since 28 July 2004.
