sitemapHome | Registration | Job Portal for CA's | Expert Exchange | Currency Converter | Post Matrimonial Ads | Post Property Ads
News shortcuts: From the Courts | News Headlines | VAT (Value Added Tax) | Placements & Empanelment | Various Acts & Rules | Latest Circulars | New Forms | Forex | Auditing | Direct Tax | Customs and Excise | ICAI | Corporate Law | Markets | Students | General | Mergers and Acquisitions | Continuing Prof. Edu. | Budget Extravaganza | Transfer Pricing | GST - Goods and Services Tax
Latest Expert Exchange
« Forex »
 Perils of an ad hoc forex policy
 Rupee depreciated by 17 paise to Rs 45.62 a dollar in early trade
 Rupee strengthened by 7 paise against dollar
 Rupee up by 4 paise against dollar in early trade
 Rupee falls by 18 paise at 4-week low against dollar
 Rupee drops on weak shares; inflation eyed
 Rupee raises 6 paise against dollar in early trade
 Rupee among most traded in futures market
 Indian rupee gain 12 paise against US dollar
 Rupee marginally rise up by 1 paise against US dollar
 Rupee drops tracking euro, choppy shares

Rupee loses 17 p on weak stocks
June, 05th 2008

 The rupee weakened by 17 paise on Wednesday, after the stock market continued to fall for the third day in a row. The rupee ended the day at 42.77/78 against the dollar, weakening from the Tuesdays close of 42.60/61, reports ET from   Mumbai   .

Dollar-buying pressure from oil companies has eased out, following the central banks decision to directly sell them dollars. However, the forex market faced pressure from the falling stock market, leading to fears that foreign investors will pull out of their holdings.
The rupee fell in tandem with the stock market, and fears are being raised over a possible shortage of dollars which could occur if outflows continue, said a trader with a private bank.

At the same time, market participants are not entirely clear about the RBIs scheme of selling dollars to oil companies, and some traders feel that it may not reduce their dollar-demand by too much.

The major concern remains that of foreign investors repatriating their funds. That the rupee had risen over 11% last year, riding on the back of foreign inflows to a booming stock market. However, consistent dollar-buying by oil companies as crude prices skyrocketed and fears of a slowdown in the economy have pushed the rupee down by about 7% this year.

Forward premia on near-term contracts rose, with the onemonth contract ending the day at 2.80% (1.70%). The six-month contract rose to 2.04% (1.54%) while the annual contract ended the day at 1.67% (1.36%). Meanwhile, bond yields rose, following the fuel price hike. Yields on the 10-year benchmark bond, the 8.24% bond maturing in 2018, ended the day at 8.14%, after rising to an intra-day high of 8.16%.

Yields had ended the day at 8.12% on Tuesday. Market participants fear that RBI will have to take inflation-controlling measures soon, which could include a hike in reporate or cash reserve requirements for banks. Liquidity remained comfortable, with banks parking surplus funds worth Rs 29,095 crore with the RBI, via reverse repo operations of its liquidity adjustment facility.

Home | About Us | Terms and Conditions | Contact Us
Copyright 2018 CAinINDIA All Right Reserved.
Designed and Developed by Binarysoft Technologies Pvt. Ltd.
Binarysoft Technologies - Our Vision

Transfer Pricing | International Taxation | Business Consulting | Corporate Compliance and Consulting | Assurance and Risk Advisory | Indirect Taxes | Direct Taxes | Transaction Advisory | Regular Compliance and Reporting | Tax Assessments | International Taxation Advisory | Capital Structuring | Withholding tax advisory | Expatriate Tax Reporting | Litigation | Badges | Club Badges | Seals | Military Insignias | Emblems | Family Crest | Software Development India | Software Development Company | SEO Company | Web Application Development | MLM Software | MLM Solutions