Latest news with #rupee
Yahoo
9 hours ago
- Business
- Yahoo
Sidheshwar Shirsath, centre, sits with his wife, Manisha, and their son, Soham, 6, as they examine gold jewelry in their Mumbai home. Shirsath, who works as a driver, began buying the jewelry nine years ago as a solid investment for his family's future. In recent months, the price of gold has skyrocketed.
Sidheshwar Shirsath, who lives in the suburbs of India's financial capital, Mumbai, first started buying gold when he got married nine years ago. Shirsath, 35, works as a driver and earns about 55,000 rupees ($889 Cdn) a month. He decided that gold might be a good way to build a nest egg for his family's future. Whenever he had some cash to spend, he purchased gold jewelry, including rings and bangles, and he now has about 130 grams of gold, worth more than one million rupees ($16,000 Cdn). "Sometime after I first bought gold, the rates started increasing, so my interest in investing in it also grew," Shirsath said. In recent months — to his delight — the price has skyrocketed. Gold globally was trading at $3,298 US an ounce on Friday morning, up more than 25 per cent since the start of the year, and up 42 per cent compared with a year ago. Gold's value globally has surged amid global economic uncertainty and geopolitical tensions, including concerns about the impact of U.S. President Donald Trump's tariff policy. The precious metal is often seen as a "safe haven" asset that investors flock to during periods of economic turbulence. In India, the price has risen even more sharply and is up 30 per cent since the beginning of the year — with the additional increase driven by the rupee's depreciation against the American dollar. But for many Indians, like Shirsath, gold is more than an investment. "Gold is very close to Indian women," he said, his wife, Manisha, sitting next to him in their modest home, adorned with a heavy gold choker and gleaming bangles. "They need gold — especially for festivals and weddings." In India, gold is primarily purchased it in the form of jewelry because it can be a way of showing off one's wealth and status. The precious metal also holds enormous religious and cultural significance. It is part of the dowry in weddings, for example, and it is considered to be auspicious to buy gold during certain Hindu festivals. "India is a very unique market for gold ," said Sachin Jain, regional CEO, India, for the World Gold Council, a global industry association. "Gold is a part of the social fabric, and you don't need to be in any particular economic strata to consume gold. "We all in India have a family doctor, so to say, and we have a family jeweller." In rural India, where most of the country's 1.4 billion people still live — and with many not having easy access to bank accounts — gold is a popular way of storing savings, Jain said. All of this means that India is one of the world's largest consumers of gold, with the country's demand for the precious metal hitting about 800 tonnes a year. The steep price, however, is having an impact on the quantity of the metal that people are buying. "With jewelry consumption, whenever the price of gold goes up, the consumer waits and watches," Jain said. "The moment it gets a bit settled, we see consumers come back." The World Gold Council's data shows that demand for gold in India in the first three months of this year stood at 118.1 tonnes, down by 15 per cent compared with the first quarter of last year. But because the price is up, the value of the country's gold demand — which is the quantity of gold that is bought or invested — in the first quarter of this year actually rose by 22 per cent, to reach 940 billion rupees ($15.1 billion Cdn). "People are buying lower quantities," said Colin Shah, managing director of Kama Jewelry, a Mumbai-based manufacturer. "They all have budgets. If someone has $2,000 to spend, they'll spend that and buy a lower volume." But, he said, that gold has by no means lost its shine, despite its high price. "In India, there is a culture of gold, and nobody is going to stop buying gold because of pricing," Shah said. "Actually, they'll have more confidence in the category due to the return they are making on their money." With Indians' appetite to own gold showing no signs of easing, the government in recent years has taken a series of steps to try to ensure that gold is brought into the formal economy. These include lowering the import duty on gold last year to six per cent from 15 per cent, partly as a way of making it less attractive for people to smuggle gold into the country to avoid paying high taxes. The government also offers sovereign gold bonds as an alternative to physical gold. The World Gold Council's Jain said that Indians are increasingly investing in gold digitally, for example, through exchange-traded funds (ETFs) — and the price surge has only encouraged people to look at these options. "The young generation is getting more and more savvy, and with the ease of technology, we believe that investment into gold and gold assets is going to get a little more digital," he said. Gold investment demand, including ETFs, rose by seven per cent in India to 46.7 tonnes in the first quarter, according to the World Gold Council. JPMorgan forecasts that the price of gold could hit $4,000 US an ounce next year. Shirsath said that he and his family have more than enough jewelry now, but he still wants to keep buying gold. "My next plan is to buy gold coins or go for bonds." WATCH | Big box stores offer gold to customers as its popularity heats up: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12 hours ago
- Business
- Yahoo
Gold is part of India's social fabric. As prices soar, customers watch, wait but, ultimately, still buy
Sidheshwar Shirsath, who lives in the suburbs of India's financial capital, Mumbai, first started buying gold when he got married nine years ago. Shirsath, 35, works as a driver and earns about 55,000 rupees ($889 Cdn) a month. He decided that gold might be a good way to build a nest egg for his family's future. Whenever he had some cash to spend, he purchased gold jewelry, including rings and bangles, and he now has about 130 grams of gold, worth more than one million rupees ($16,000 Cdn). "Sometime after I first bought gold, the rates started increasing, so my interest in investing in it also grew," Shirsath said. In recent months — to his delight — the price has skyrocketed. Gold globally was trading at $3,298 US an ounce on Friday morning, up more than 25 per cent since the start of the year, and up 42 per cent compared with a year ago. Gold's value globally has surged amid global economic uncertainty and geopolitical tensions, including concerns about the impact of U.S. President Donald Trump's tariff policy. The precious metal is often seen as a "safe haven" asset that investors flock to during periods of economic turbulence. In India, the price has risen even more sharply and is up 30 per cent since the beginning of the year — with the additional increase driven by the rupee's depreciation against the American dollar. But for many Indians, like Shirsath, gold is more than an investment. "Gold is very close to Indian women," he said, his wife, Manisha, sitting next to him in their modest home, adorned with a heavy gold choker and gleaming bangles. "They need gold — especially for festivals and weddings." In India, gold is primarily purchased it in the form of jewelry because it can be a way of showing off one's wealth and status. The precious metal also holds enormous religious and cultural significance. It is part of the dowry in weddings, for example, and it is considered to be auspicious to buy gold during certain Hindu festivals. "India is a very unique market for gold ," said Sachin Jain, regional CEO, India, for the World Gold Council, a global industry association. "Gold is a part of the social fabric, and you don't need to be in any particular economic strata to consume gold. "We all in India have a family doctor, so to say, and we have a family jeweller." In rural India, where most of the country's 1.4 billion people still live — and with many not having easy access to bank accounts — gold is a popular way of storing savings, Jain said. All of this means that India is one of the world's largest consumers of gold, with the country's demand for the precious metal hitting about 800 tonnes a year. The steep price, however, is having an impact on the quantity of the metal that people are buying. "With jewelry consumption, whenever the price of gold goes up, the consumer waits and watches," Jain said. "The moment it gets a bit settled, we see consumers come back." The World Gold Council's data shows that demand for gold in India in the first three months of this year stood at 118.1 tonnes, down by 15 per cent compared with the first quarter of last year. But because the price is up, the value of the country's gold demand — which is the quantity of gold that is bought or invested — in the first quarter of this year actually rose by 22 per cent, to reach 940 billion rupees ($15.1 billion Cdn). "People are buying lower quantities," said Colin Shah, managing director of Kama Jewelry, a Mumbai-based manufacturer. "They all have budgets. If someone has $2,000 to spend, they'll spend that and buy a lower volume." But, he said, that gold has by no means lost its shine, despite its high price. "In India, there is a culture of gold, and nobody is going to stop buying gold because of pricing," Shah said. "Actually, they'll have more confidence in the category due to the return they are making on their money." With Indians' appetite to own gold showing no signs of easing, the government in recent years has taken a series of steps to try to ensure that gold is brought into the formal economy. These include lowering the import duty on gold last year to six per cent from 15 per cent, partly as a way of making it less attractive for people to smuggle gold into the country to avoid paying high taxes. The government also offers sovereign gold bonds as an alternative to physical gold. The World Gold Council's Jain said that Indians are increasingly investing in gold digitally, for example, through exchange-traded funds (ETFs) — and the price surge has only encouraged people to look at these options. "The young generation is getting more and more savvy, and with the ease of technology, we believe that investment into gold and gold assets is going to get a little more digital," he said. Gold investment demand, including ETFs, rose by seven per cent in India to 46.7 tonnes in the first quarter, according to the World Gold Council. JPMorgan forecasts that the price of gold could hit $4,000 US an ounce next year. Shirsath said that he and his family have more than enough jewelry now, but he still wants to keep buying gold. "My next plan is to buy gold coins or go for bonds." WATCH | Big box stores offer gold to customers as its popularity heats up:
CBC
13 hours ago
- Business
- CBC
Gold is part of India's social fabric. As prices soar, customers watch, wait but, ultimately, still buy
Social Sharing Sidheshwar Shirsath, who lives in the suburbs of India's financial capital, Mumbai, first started buying gold when he got married nine years ago. Shirsath, 35, works as a driver and earns about 55,000 rupees ($889 Cdn) a month. He decided that gold might be a good way to build a nest egg for his family's future. Whenever he had some cash to spend, he purchased gold jewelry, including rings and bangles, and he now has about 130 grams of gold, worth more than one million rupees ($16,000 Cdn). "Sometime after I first bought gold, the rates started increasing, so my interest in investing in it also grew," Shirsath said. In recent months — to his delight — the price has skyrocketed. Gold globally was trading at $3,298 US an ounce on Friday morning, up more than 25 per cent since the start of the year, and up 42 per cent compared with a year ago. Gold's value globally has surged amid global economic uncertainty and geopolitical tensions, including concerns about the impact of U.S. President Donald Trump's tariff policy. The precious metal is often seen as a "safe haven" asset that investors flock to during periods of economic turbulence. 'Gold is a part of the social fabric' In India, the price has risen even more sharply and is up 30 per cent since the beginning of the year — with the additional increase driven by the rupee's depreciation against the American dollar. But for many Indians, like Shirsath, gold is more than an investment. "Gold is very close to Indian women," he said, his wife, Manisha, sitting next to him in their modest home, adorned with a heavy gold choker and gleaming bangles. "They need gold — especially for festivals and weddings." In India, gold is primarily purchased it in the form of jewelry because it can be a way of showing off one's wealth and status. The precious metal also holds enormous religious and cultural significance. It is part of the dowry in weddings, for example, and it is considered to be auspicious to buy gold during certain Hindu festivals. "India is a very unique market for gold ," said Sachin Jain, regional CEO, India, for the World Gold Council, a global industry association. "Gold is a part of the social fabric, and you don't need to be in any particular economic strata to consume gold. "We all in India have a family doctor, so to say, and we have a family jeweller." India among world's largest gold consumers In rural India, where most of the country's 1.4 billion people still live — and with many not having easy access to bank accounts — gold is a popular way of storing savings, Jain said. All of this means that India is one of the world's largest consumers of gold, with the country's demand for the precious metal hitting about 800 tonnes a year. The steep price, however, is having an impact on the quantity of the metal that people are buying. "With jewelry consumption, whenever the price of gold goes up, the consumer waits and watches," Jain said. "The moment it gets a bit settled, we see consumers come back." The World Gold Council's data shows that demand for gold in India in the first three months of this year stood at 118.1 tonnes, down by 15 per cent compared with the first quarter of last year. But because the price is up, the value of the country's gold demand — which is the quantity of gold that is bought or invested — in the first quarter of this year actually rose by 22 per cent, to reach 940 billion rupees ($15.1 billion Cdn). "People are buying lower quantities," said Colin Shah, managing director of Kama Jewelry, a Mumbai-based manufacturer. "They all have budgets. If someone has $2,000 to spend, they'll spend that and buy a lower volume." But, he said, that gold has by no means lost its shine, despite its high price. "In India, there is a culture of gold, and nobody is going to stop buying gold because of pricing," Shah said. "Actually, they'll have more confidence in the category due to the return they are making on their money." Investing in gold digitally is on the rise With Indians' appetite to own gold showing no signs of easing, the government in recent years has taken a series of steps to try to ensure that gold is brought into the formal economy. These include lowering the import duty on gold last year to six per cent from 15 per cent, partly as a way of making it less attractive for people to smuggle gold into the country to avoid paying high taxes. The government also offers sovereign gold bonds as an alternative to physical gold. The World Gold Council's Jain said that Indians are increasingly investing in gold digitally, for example, through exchange-traded funds (ETFs) — and the price surge has only encouraged people to look at these options. "The young generation is getting more and more savvy, and with the ease of technology, we believe that investment into gold and gold assets is going to get a little more digital," he said. Gold investment demand, including ETFs, rose by seven per cent in India to 46.7 tonnes in the first quarter, according to the World Gold Council. JPMorgan forecasts that the price of gold could hit $4,000 US an ounce next year. Shirsath said that he and his family have more than enough jewelry now, but he still wants to keep buying gold. "My next plan is to buy gold coins or go for bonds."
Reuters
3 days ago
- Business
- Reuters
US court ruling on tariffs lifts dollar, dragging rupee lower
MUMBAI, May 29 (Reuters) - The Indian rupee is set to open weaker on Thursday, weighed by the dollar's strength after a U.S. court blocked President Donald Trump's tariffs. The 1-month non-deliverable forward indicated the local currency would open in the 85.48-85.52 range, compared to a close of 85.36 in the previous session. "When you think about it, it's a bit counterintuitive that Asia is lower on the back of the U.S. court blocking tariffs," a currency trader at a Mumbai-based bank said. "However, that's been the pattern — tariffs imply weaker U.S. growth and a softer dollar." The trader expects the rupee to find support in the 85.50–85.60 zone, and reckons that the opening decline in the rupee will not sustain. The dollar index climbed past the 100 level, Asian currencies were down between 0.1% and 0.6%, and U.S. equity futures rallied after a U.S. court blocked Trump from imposing tariffs, saying the U.S. Constitution provides Congress exclusive authority to regulate commerce. The Trump administration filed a notice of appeal and questioned the authority of the court. Trump's tariff plans on U.S. trading partners had drawn warnings from economists about the potential for higher inflation and uncertainty, which had weighed on the dollar. The U.S. court ruling blocking the tariffs brought relief to the dollar, at least for now. "The question is what's next. First, we think tariffs will likely still be in force during the appeals process, with the Trump administration likely to take the appeals process all the way up to the Supreme Court," MUFG Bank said in a note. The immediate reaction of the dollar strengthening and Asian currencies weakening may not last considering that the tariffs are likely to stay and with the legal uncertainty potentially crimping US growth and investment plans, it said. KEY INDICATORS: ** One-month non-deliverable rupee forward at 85.64; onshore one-month forward premium at 15 paisa ** Dollar index at 100.24 ** Brent crude futures up 1.2% at $65.7 per barrel ** Ten-year U.S. note yield at 4.5% ** As per NSDL data, foreign investors bought a net $111.7 million worth of Indian shares on May. 27 ** NSDL data shows foreign investors bought a net $22 million worth of Indian bonds on May. 27
Reuters
4 days ago
- Business
- Reuters
Rupee bogged down by month-end importer dollar bids, firmer greenback
MUMBAI, May 28 (Reuters) - The Indian rupee declined on Wednesday in the face of month-end dollar demand from importers and a broad recovery in the greenback following better-than-expected U.S. consumer confidence data. The rupee weakened to 85.6575 against the U.S. dollar as of 11:20 a.m. IST, down 0.3% on the day. Traders pointed to a heightened appetite to buy dollars at the daily reference rate published by the Reserve Bank of India, likely spurred by month-end corporate payments. The daily fix was last quoted at 0.40/0.60 paisa premium, a trader at a Mumbai-based bank said. Anticipation of portfolio dollar outflows related to an equity block deal is prompting some intra-day speculative bets, weighing on the rupee, the trader said. British American Tobacco (BATS.L), opens new tab said on Tuesday it intends to sell a 2.3% stake in Indian consumer goods company ITC ( opens new tab, worth about $1.4 billion in a block trade deal. In the near-term, the rupee is expected to hover between 84.80 and 85.80, said Amit Pabari, managing director at FX advisory firm CR Forex. The dollar index, meanwhile, rose 0.3% to 99.8, boosted by upbeat economic data, which also helped Wall Street surge overnight as investors returned from an extended weekend break. Asian equities were mostly stronger on the day but India's benchmark indexes, the BSE Sensex (.BSESN), opens new tab and Nifty 50 (.NSEI), opens new tab, were slightly in the red. The country's benchmark 10-year bond yield eased below a key level, propelled by bets of deeper interest rate cuts by the central bank and comforted by a fall in long tenor U.S. Treasury yields. "Broadly, we saw DM (developed market) curves bull flatten amidst hopes that there could be more policy support for long-end bonds. Month-end flows probably helped as well," DBS said in a note.
