Latest news with #rupee
Yahoo
an hour ago
- Business
- Yahoo
India cenbank net bought $1.76 billion in forex market in May, bulletin shows
MUMBAI (Reuters) -The Reserve Bank of India (RBI) bought a net of $1.76 billion in the foreign exchange market in May, data released on Wednesday as part of the central bank's monthly bulletin showed. The RBI said it purchased $9.1 billion and sold $7.3 billion during the month. In April, the central bank had sold a net of $1.66 billion. The Indian rupee had declined by over 1% in May, pressured by persistent uncertainty over U.S. trade policies, an armed conflict between India and Pakistan, and likely dollar-buying interventions by the central bank. The RBI's net outstanding forward sale stood at $65.2 billion as of end-April, compared with a net sale of $72.6 billion at the end of the previous month, the data showed. The central bank intervenes in the spot and forwards market to curb exchange rate volatility. The rupee closed little changed at 86.4075 per U.S. dollar on Wednesday. Sign in to access your portfolio
Reuters
4 hours ago
- Business
- Reuters
Rupee dips but firmer yuan, exporter dollar sales cushion losses
MUMBAI, July 23 (Reuters) - The Indian rupee ended marginally weaker on Wednesday with the strength in the Chinese yuan and exporter activity helping the currency hold above a psychologically important support level. The rupee closed at 86.4075 per U.S. dollar, down slightly from its close at 86.3675 in the previous session but managing to hold above the 86.50 support level. The offshore Chinese yuan rose to a near three-week high while the dollar index was a tad lower at 97.4. Dollar sales from a large private bank and exporter activity also helped the rupee contain its losses on the day, alongside positive regional cues, a trader at a state-run bank said. India's benchmark equity indexes, the BSE Sensex (.BSESN), opens new tab and Nifty 50 (.NSEI), opens new tab closed higher by about 0.6% each, tracking gains in global equities that were buoyed by hopes of easing trade tensions after a deal between the U.S. and Japan. "Equity markets globally are rallying on the view that deals reduce uncertainty," ING said in a note. U.S. President Donald Trump also announced a trade agreement with the Philippines, released terms of a previous deal with Indonesia on Tuesday and said that EU representatives were coming for trade negotiations on Wednesday. Officials from China and the U.S. are also expected to meet next week to discuss an extension to the deadline for negotiating a trade deal. For India, though, the prospects of a trade deal before the August 1 deadline have dimmed, with talks deadlocked over tariff cuts on key agricultural and dairy products. Foreign portfolio outflows and the lack of an outcome on trade negotiations have maintained pressure on the rupee, said Dilip Parmar, a foreign exchange research analyst at HDFC Securities. Parmar expects the rupee to decline towards 86.70 in the near-term.
Reuters
11 hours ago
- Business
- Reuters
Muted open for rupee despite Asia cheer on US-Japan trade pact
MUMBAI, July 23 (Reuters) - The Indian rupee is expected to open largely unchanged on Wednesday, shrugging off the modest boost to its Asian peers after a U.S.-Japan trade deal fuelled hopes that Washington may strike similar agreements with other countries. The 1-month non-deliverable forward indicated the rupee will open in the 86.35-86.38 range versus the U.S. dollar, compared with 86.3675 on Tuesday. The rupee will "receive mild help" at open on account of Asia, a currency trader at a Mumbai-based bank said. "However, dips (on USD/INR) have been bought into quickly and the odds favour a repeat of that," he said, adding, "I will definitely not be looking to sell USD/INR currently." On Tuesday, the rupee briefly recovered to 86.22 before slipping to a one-month low of 86.4125 on likely outflows and hedging. The currency has declined in seven of the last eight sessions, dropping 0.7% so far this month. Shares in Tokyo jumped and U.S. equity futures rose after U.S. President Donald Trump announced a trade deal with Japan, lowering proposed tariffs on Japanese imports to 15% from 25%. The agreement lifted the yen and other Asian currencies. The U.S.-Japan deal comes just days ahead of the August 1 deadline set by Trump for finalising trade agreements or face steep tariffs. The scheduled rollout of the reciprocal tariff on 1 August "looms large", MUFG Bank said in a note. "In the absence of new US trade deals, there's a risk that tariff levels could revert to the steeper rates announced during Liberation Day in April. This uncertainty is weighing on the U.S. dollar." On Tuesday, Trump announced a new 19% tariff on goods from the Philippines, just below the 20% rate he had previously threatened to impose. India, meanwhile, has yet to reach a trade agreement with the United States and the prospects of an interim trade deal before the August 1 deadline have dimmed. KEY INDICATORS: ** One-month non-deliverable rupee forward at 86.40; onshore one-month forward premium at 11.75 paise ** Dollar index at 97.48 ** Brent crude futures up 0.4% to $68.8 per barrel ** Ten-year U.S. note yield at 4.36% ** As per NSDL data, foreign investors sold a net $125.8 million worth of Indian shares on July 21 ** NSDL data shows foreign investors sold a net $8.9 million worth of Indian bonds on July 21
Reuters
a day ago
- Business
- Reuters
Drop in US Treasury yields helps Indian rupee
MUMBAI, July 22 (Reuters) - The Indian rupee was marginally stronger on Tuesday and dollar-rupee forward premiums ticked up as concerns over the economic fallout of U.S. President Donald Trump's trade war drove U.S. Treasury yields, the greenback and crude oil prices lower. The rupee ticked up to 86.2650 per U.S. dollar by 11:10 a.m. IST, slightly higher than its close at 86.2925 in the previous session. The dollar index was steady at 97.9 in Asia trading after falling 0.6% on Monday, tracking a decline in U.S. Treasury yields that saw the 10-year yield touch a near two-week low of about 4.35%. Short-term U.S. Treasury yields declined as well, which helped boost far-tenor dollar-rupee forward premiums. The 1-year dollar rupee implied yield rose to an over two-week high of 2.03%, while a fall in rupee liquidity in the banking system helped lift very near-tenor dollar-rupee swap rates. Indian assets largely sidestepped a media report that a trade deal between India and the U.S. is unlikely before August 1 with equities and the rupee clinging to slight gains while the yield on the benchmark 10-year bond was little changed. Steep reciprocal levies on exports to the U.S. are slated to go into effect next month with India likely to face a 26% charge in the absence of a deal. "The rupee's trajectory remains tilted toward further weakness, with both the 86.00 and 86.20 levels now breached. This opens the door for a move toward 86.50–86.80," said Amit Pabari, managing director at FX advisory firm CR Forex. In addition to uncertainty on global trade dynamics, muted foreign portfolio flows have also been a sore point for the rupee. Overseas investors have net sold about half a billion dollars of local stocks in July so far while year-to-date outflows stand at nearly $9.5 billion.
Yahoo
a day ago
- Business
- Yahoo
Japanese yen-led dollar pullback to offer mild support to rupee at open
By Nimesh Vora MUMBAI (Reuters) -The Indian rupee is poised to open slightly higher on Tuesday, supported by a retreat in the dollar index that was largely triggered by a post-election rally in the Japanese yen. The 1-month non-deliverable forward indicated the rupee will open in the 86.20-86.22 range, versus 86.2925 in the previous session. On Monday, the Indian rupee weakened to 86.35 per dollar, its lowest level in a month, extending its losing streak to four sessions. Bankers attributed the decline to sustained dollar demand from importers and positioning in the non-deliverable forward (NDF) market. A lack of equity inflows has added to the pressure on the currency. The trading range on USD/INR "has probably shifted higher," with the 86.00–86.10 now acting as a support zone, a currency trader at a Mumbai-based bank said. "Interbank is more inclined to buying dips than trying to call the top," the trader added. The rupee at open is likely to find some support from the drop in the dollar index, which slid 0.62% on Monday — its steepest fall in over a month. The decline was spurred by a 1% jump in the yen. While the ruling coalition lost its majority, Prime Minister Ishiba's remarks that he would stay offered comfort to the yen, analysts said. Outside the yen, other Asian currencies were mixed on Tuesday, with the focus squarely on any progress on trade talks before the August 1 deadline for countries to strike deals with the U.S. or face high tariffs. Focus will also be on the outlook for Federal Reserve rate cuts. Last week, Fed Governor Christopher Waller signalled he may dissent at next week's meeting, where policymakers are widely expected to keep rates unchanged. "Waller remains in the distinct minority of two. We'll likely need to see very soft data, especially on the labour market, to convince investors that early cuts are on the table," ING Bank said in a note. KEY INDICATORS: ** One-month non-deliverable rupee forward at 86.32; onshore one-month forward premium at 11.50 paisa ** Dollar index at 97.88 ** Brent crude futures down 0.8% at $68.6 per barrel ** Ten-year U.S. note yield at 4.38% ** As per NSDL data, foreign investors bought a net $90.7 million worth of Indian shares on July 18 ** NSDL data shows foreign investors sold a net $41.9 million worth of Indian bonds on July 18 Sign in to access your portfolio
