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
« Markets »
 FM calms nerves, says no plan to tax market gains
 Why we must tweak the market-led model
 PE transactions prompt income tax queries over round tripping concerns
 Amended India-Mauritius tax treaty only covers investments in shares
 Government drops cap gains tax on startup shares held for 2 years
 Tax-free bonds regain demand in the secondary market
 Relevant Market’ Under Competition Act, 2002
 Indian markets best in terms of earnings momentum, price revision
 How India will become a common market with GST
 Broader markets outperform; Nifty holds 8,500
 Have Indian markets run ahead of fundamentals?

Rupee to rebound after RBI move: JP Morgan
June, 03rd 2008

The rupee may reverse a part of its recent weakness after the Reserve Bank of India's decision to provide foreign exchange to oil companies, J P Morgan Chase said in a note on Monday.

On Friday, the Reserve Bank of India said it would conduct open market operations in the secondary market in oil bonds held by state-run companies to provide liquidity to oil refiners.

"This announcement highlights policymakers' concern about the market impact of elevated foreign currency demand from oil importers," Vikas Agarwal and Siddharth Mathur wrote in a statement.

The potential size of the open market operations is significant and would provide oil refiners with around half their average daily foreign currency requirement, they wrote.

 They estimate the central bank could provide as much as $12 billion of foreign exchange to oil companies under this facility.

If energy prices remain around current elevated levels, India's net oil imports could rise to almost $100 billion this financial year from around $55 billion last year, they said.

"As the pickup in demand from oil companies was an important pillar of bearish INR views, we expect that this new facility could have a substantial market impact," the statement said. They, however, maintain a bearish outlook on the rupee in 2008 as due to its weakness over the past several weeks, the balance of payments is likely to continue to remain under pressure.

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 Portfolio

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