The Reserve Bank of India likely sold dollars, though the force was mild, according to two senior forex officials at state-run banks
Kumar also said we have to do away with the mentality of judging an economy's strength
Rupee leaps from life low to snap weeks of decline despite
global headwinds
Forex: The rupee staged a spirited recovery from its
life-time low to end higher by a whopping 24 paise at 69.91
against the US currency in a highly volatile week on bouts of
dollar selling by exporters and corporates.
After a seemingly endless stream of gloomy news and
falling values, sentiment has finally started to show signs of
improvement globally against the backdrop of the upcoming
visit of Chinese delegates to the US in order to re-ignite
trade talks.
Easing contagion risk on emerging-market currencies
after last weeks carnage also added a positive vibe on the
trading front.
The domestic currency larely withstood the headwinds
of surging crude prices and trade deficit worries.
The benchmark B
Rajan says, this is a time where countries should be focusing on getting the macro stability in order
Finance ministry has linked rupee weakness to external factors
The recent fall in rupee will raise funding costs
The three sectors with the biggest gains are PSU banks (up 14.3%), pharma (11.4%) and metals (up 10.4%)
The rupee may not always depreciate, and international markets also go through ups and downs
The higher price of crude oil and the falling rupee, coupled with looser fiscal policy, might have inflationary impact
Rupee bleeds on geopolitical and macro stress; breakdown 70
mark to hit lifelow
Forex: The gusty rupee went into a tailspin and
suffered one of its worst stretches in history - crashing
mercilessly to breach the key psychological 70-mark to end at
a life-time low of 70.15 against the resurgent US dollar.
An unprecedented speculative sell-off alongwith heavy
dollar demand from importers sent the domestic unit tumbling
by a steep 132 paise - its biggest weekly fall this year so
far despite government's soothing rhetoric.
The Indian unit collapsed to a life-time low of 70.40,
triggering currency market intervention by the central bank to
defend the beleaguered rupee.
Panic and capitulation overshadowed trading sentiment
as traders and speculators saw no signs that monetary
authorities would
Since the beginning of this year, it has declined by only 9.8%
A sharp surge in trade deficit, which soared to a near five-year high of USD 18 billion, too impacted the rupee
From the end of March 2018 to August 3, India's foreign exchange reserves were down by $21.84 billion to $402.70 billion
To stem the fall in the currency's value, the central banks across the world are raising interest rates, triggered by rising US interest rates and a rising dollar
The rupee hit an all-time low of 70.1 to a US dollar earlier on Tuesday on concerns over Turkey's economic woes
A weaker currency complicates the central bank's job of keeping prices in check as it makes imports costlier
Rupee may fall further if global concerns, including US's protectionist measures against countries such as Turkey and China, persist.
The fall in the broader market was sharper, with two stocks declining for every one advancing on the BSE
On Friday, the rupee had lost 15 paise to end at 68.83 against the resurgent dollar
The Indian rupee has lost more than 6.5 per cent and has hit its lifetime low of 69.10 a dollar in June-end