Rupee hits fresh 1-month high, up 30 paise vs dollar

The rupee on Thursday rose by 30 paise to trade at fresh one-month high of 61.75 against the dollar in early trade at the Interbank Foreign Exchange market on increased selling of the US currency by exporters, amid sustained foreign capital inflows.

Strengthening of other currencies against the dollar overseas and a higher opening in the domestic equity market also supported the local currency, forex dealers said.

The rupee had gained 31 paise to close at one-month high of 62.05 against the dollar in yesterday's trade.

More: http://timesofindia.indiatimes.com/business/india-business/Rupee-hits-fresh-1-month-high-up-30-paise-vs-dollar/articleshow/26887973.cms

Rupee drops 36 paise against dollar in late morning trade

The rupee dropped 36 paise to 61.86 against dollar in late morning trade on persistent demand for the U.S. unit from banks and importers amid a firm dollar overseas.

In spite of sustained foreign inflows into Indian equities, the rupee declined against the U.S. currency for the second consecutive day on the back of firmness in dollar in global markets.

The Indian unit resumed lower at 61.95 per dollar, as against the last closing level of 61.50, at the Interbank Foreign Exchange (Forex) market and hovered in a range of 61.80-61.96 before quoting at 61.86 a dollar at 1040hrs.

In New York market, the US dollar jumped against the euro on Thursday even as euro-zone inflation in October dropped below 1 per cent to its lowest level in nearly four years.

Meanwhile, the Indian benchmark Sensex rallied to an all-time high of 21,293.88 in early trade before quoting at 21,210.48 at 1045 hrs, showing a rise of 45.96 points, or 0.22 per cent.

More: http://www.thehindu.com/business/markets/rupee-drops-36-paise-against-dollar-in-late-morning-trade/article5304014.ece

Rupee up 3 paise at 61.60/dollar

The rupee was trading marginally up by 3 paise at 61.60 against the dollar at 1.35 p.m. local time on mild dollar demand from banks and importers.

The rupee strengthened by 55 paise to 61.08 per dollar in the opening trade against the previous close of 61.63 on the back of weakening of the American currency due to lower-than-anticipated US jobs data.

On Tuesday, the dollar buying by a private chemical firm and state-run banks for meeting the Centre’s Defence payments, weighed on the domestic unit.

Non-farm payrolls data

In a report released on Tuesday, the US Department of Labour had said that non-farm payrolls rose by a seasonally adjusted 148,000 in September, below the expectations of an increase of 180,000.

Tapering of Fed stimulus

S. Srinivasaraghavan, Head of Treasury at Dhanlaxmi Bank, said the rupee is likely to strengthen during the week on the back of lower-than-expected US payrolls data, which is likely to delay the easing of the Federal Reserve’s bond-buying programme.

According to Abhishek Goenka, Founder and Chief Executive Officer of India Forex Advisors, "Indian rupee is seen gaining after concerns ease over US tapering plans which made the rupee to tumble by 24 per cent. The slight improvement in local fundamentals and continuous flows from FCNR and FIIs flow could further support the rupee."

Call rates, G-Secs

The inter-bank call money rate, the rate at which banks borrow from each other to meet their short-term fund requirements, opened higher at 9.05 per cent from the previous close of 9 per cent.

The 7.16 per cent government security, which matures in 2023, opened higher at Rs 91.05 from the previous close of Rs 90.68. The yields softened to 8.54 per cent from the previous close of 8.60 per cent.

More: http://www.thehindubusinessline.com/markets/forex/rupee-up-3-paise-at-6160dollar/article5263966.ece

India tops global chart of remittances

India has topped the global chart of remittances with a whopping USD 71 billion in remittances in 2013, just short of three times the FDI it received in 2012, according to a revised World Bank forecast issued on Wednesday. Also read: Expect rupee to trade in range of 62-63/USD: Ashutosh Raina Top recipients of officially recorded remittances for 2013 are India (with an estimated USD 71 billion), China (USD 60 billion), the Philippines (USD 26 billion), Mexico (USD 22 billion), Nigeria (USD 21 billion), and Egypt (USD 20 billion), the report said. Other large recipients include Pakistan, Bangladesh, Vietnam and Ukraine. 

As a percentage of GDP, the top recipients of remittances, in 2012, were Tajikistan (48 percent), Kyrgyz Republic (31 percent), Lesotho and Nepal (25 percent each) and Moldova (24 percent). "These latest estimates show the power of remittances," said Kaushik Basu, Senior Vice President and Chief Economist of the World Bank. "For a country like Tajikistan they constitute half the GDP. For Bangladesh remittances provide vital protection against poverty. In terms of volume, India, with USD 71 billion of remittances, tops the global chart.

 To put this in perspective, this is just short of three times the FDI it received in 2012," he said. "Remittances act as a major counter-balance when capital flows weaken as happened in the wake of the US Fed announcing its intention to reign in its liquidity injection programme. Also, when a nation's currency weakens, inward remittances rise and, as such, they act as an automatic stabiliser," Basu said. According to World Bank estimates, India and China alone will represent nearly a third of total remittances to the developing world this year. 

Remittance volumes to developing countries, as a whole, are projected to continue growing strongly over the medium term, averaging an annual growth rate of nine percent to reach USD 540 billion in 2016. Global remittances, including those to high-income countries, are estimated to touch USD 550 billion this year, and reach a record USD 707 billion by 2016, the Bank said. Remittances to the developing world are expected to grow by 6.3 percent this year to USD 414 billion and are projected to cross the half-trillion mark by 2016, the report said.

 "Remittances are the most tangible and least controversial link between migration and development," said Dilip Ratha, Manager of the Migration and Remittances Team at the Bank's Development Prospects Group. "Policymakers can do much more to maximise the positive impact of remittances by making them less costly and more productive for both the individual and the recipient country," Ratha said.

Read more at: http://www.moneycontrol.com/news/economy/india-tops-global-chartremittances_962295.html?utm_source=ref_article

Indian rupee up 31 paise to 62.15 vs dollar in early trade

The rupee was trading 31 paise up to 62.15 against the US dollar in early trade on Thursday at the Interbank Foreign Exchange after dollar weakened against other major overseas currencies.

The rupee had gained 14 paise to close at 62.46 against the dollar in previous session on Tuesday, supported by a better-than-expected current account deficit data.

The forex market remained closed yesterday on account of "Gandhi Jayanti".

Besides, increased dollar selling by exporters and a higher opening in the domestic equity market also supported the rupee, forex dealers said.

Meanwhile, the BSE benchmark Sensex rose by 156.43 points, or 0.80 per cent, to 19,673.58 in early trade on Thursday.

With PTI inputs

Sensex edges up, rupee moves higher to 62 levels

Indian stock markets rose in early trade in line with other global markets even as the US crisis dragged on. The Sensex was up 160 points at 19,677 while Nifty rose to 5,826, up 46 points.

Though the US shutdown dragged on with no end in sight, global share markets have remained calm, hoping that major central banks might now have to stay super-loose for longer.

The rupee inched higher close to 62 levels against the dollar as the US currency continued to weaken against other currencies. The US dollar hit a eight-month low against a basket of six major global currencies.

Sarvendra Srivastava, a market analyst, said a weak dollar will benefit the commodity stocks.

Asian markets were broadly higher, with MSCI's broadest index of Asia-Pacific shares outside Japan moving 0.8 percent higher, after a flat performance on Wednesday.

Japan's Nikkei recovered early losses to be steady on the day, while Australian shares added 0.7 percent.

Also helping sentiment was an upbeat survey on China's huge services sector, an antidote to a disappointing report on manufacturing earlier in the week.

In the US, a meeting between U.S. President Barack Obama and congressional leaders produced nothing but blame and counter-blame, dimming hopes of an early end to the budget impasse.

So far, investors have been wagering that a deal would be reached in time to avoid lasting damage to the economy, although another fight over the debt ceiling still looms. (With Reuters Inputs)

Indian rupee opens at 62.49 per dollar

The Indian rupee opened with a marginal gain of 11 paise at 62.49 per dollar versus 62.60 yesterday. Tirthankar Patnaik, Religare said, "We expect overall CAD for the fiscal at a much lower USD 55 billion or 3.2 percent of GDP, thanks to a narrowing trade deficit. Concerns on the capital account have also faded after the RBI's recent steps. 

However, with lower growth and the Fed's 'taper' still remaining key risks for India, we maintain our 58-62/USD band for the rupee for now." Meanwhile, current account deficit (CAD) widens to USD 21.8 billion in the first quarter of the fiscal. Imports surge at a 4.7 percent pace during the quarter, while exports decline by 1.5 percent.

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Rupee up 11 paise against dollar in early trade

- Reuters

The rupee appreciated by 11 paise to 62.49 against the dollar in early trade on Tuesday, at the Interbank Foreign Exchange, mainly due to selling of the American currency by exporters.

A higher opening in the domestic equity market and a weak euro against other overseas currencies also supported the gain in the local currency, forex dealers said.

The rupee had fallen by nine paise to a one-week low of 62.60 against the dollar in yesterday's trade.
Meanwhile, the BSE benchmark index Sensex recovered by 58.95 points, or 0.30%, to 19,438.72 in early trade today.

Rupee keeps losses; up 5.6 pc so far in September quarter

The rupee kept losses, though off lows on selling by foreign banks. The pair is at 62.78/80 versus Friday's close of 62.51/52, after touching an intraday low of 63.03.

Custodial flows-related selling by foreign banks and IT-related flows are keeping the rupee's gains in check.

The Indian currency was headed for a first monthly gain in 5 months, down 4.6 per cent, and for a second quarter of gains, up 5.6 per cent.

Local stocks extend losses, down 1.2 per cent. India's June-quarter current account deficitlikely to be higher than $18 billion with data due at 1130 GMT.