Nifty99000 100%

Sensex99000 100%

Article rating: 3.9
Tags:
Article rating: 3.9
Tags:
Article rating: 5.0
Tags:
Article rating: 4.2
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 5.0
Tags:
Article rating: 3.5
Tags:
Article rating: 4.7
Tags:
Article rating: No rating
Tags:
Article rating: 5.0
Tags:
Article rating: No rating
Tags:
Article rating: No rating
Tags:
Article rating: 5.0
Tags:
Article rating: 4.3
Tags:
Article rating: 4.5
Tags:
RSS

News

Rupee snaps 7-day falling streak, vaults 26 paise to end at 71.73 on RBI succour

Author: PTI/Saturday, September 8, 2018/Categories: Currency

Rupee snaps 7-day falling streak, vaults 26 paise to end at 71.73 on RBI succour

Mumbai - The rupee on Friday staged a turnaround to close higher by 26 paise at 71.73 against the US dollar, snapping its seven-session losing streak after heavy intervention by the Reserve Bank.

Weighed down by trade concerns and rising crude prices, the Indian currency breached the 72 mark to trade at 72.04 to the dollar in morning trade.

However, heavy intervention by the RBI predominantly resisted the rupee's sharp depreciation and helped it rebound from record low levels.

Some calm returned to forex front with sentiment soothed by positive comments and confidence-building measures from the government after what was described as carnage.

Steady crude oil prices and a relief on the trade front as the US did not slap duties on USD 200 billion of Chinese goods after the passing of a deadline for a public consultation eased pressure on the local currency.

Benchmark Brent crude oil was trading at USD 76.74 a barrel in early Asian trade.

The battered rupee lost a whopping 189 paise in the last seven trading sessions which resulted in the worst sell-offs in the forex history.

The rupee resumed higher at 71.95 from overnight level of 71.99 at the inter-bank foreign exchange (forex) market on bouts of dollar selling by state-run banks.

However, intense volatility pushed the rupee to break the 72-mark to hit a low of 72.04 on an intraday basis.

But, the local unit quickly bounced back to trade in positive terrain following central bank intervention. It later touched a session high of 71.65 before ending at 71.73, revealing a gain of 26 paise, or 0.36%.

The Financial Benchmarks India private limited (FBIL), meanwhile, fixed the reference rate for the dollar at 71.9009 and for the euro at 83.6744.

In the cross-currency trade, the rupee recovered against the euro to settle at 83.25 from 83.70 yesterday.

The home unit, however, remained weak against the Pound sterling to end at 93.19 per pound as compared to 93.08 and also eased against the Japanese yen to close at 64.70 per 100 yens from 64.69.

The 10-year G-Sec yield also softened to end at 8.03%.

The Indian currency stands out as one of the most vulnerable and worst performing currency in Asia this year so far with a steep 13% fall in value against the resurgent dollar bulls.

Hardening concerns over slowing capital flows and a wider trade deficit could stretch the funding of India's current account gap due to lower-than-expected goods and services tax collections increased volatility uncertainty in the midst of Trumps geopolitical mess and contagion spreads.

While inflation risks have increased on high oil prices raising the probability of faster hikes in interest rates by the RBI.

Globally, the US dollar traded modestly higher against major trading rivals as investors prepare for the jobs report later in the day.

Against a basket of other currencies, the dollar index was higher at 95.28

In forward market today, premium for dollar softened due to sustained receiving from exporters.

The benchmark six-month forward premium payable in January 2019 moved down to 120-122 paise from 122-124 paise and the far-forward July contract also edged lower to 272-274 paise from 275.50-277.50 paise on Thursday.

Print Rate this article:
No rating

Number of views (330)/Comments (0)

rajyashree guha

PTI

Other posts by PTI
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free