LIVE TV
ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Budget 2021
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Jobs
  • Indian Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • Authors
  • More ...
    • VIDEOS
    • PHOTOS
Read in App
Business News » India News

Indian rupee rescued from falling under 72/$; Cost? About $2 billion

The Reserve Bank of India (RBI) sold nearly $1.5-2 billion on Wednesday to save rupee from record low of Rs 71.95/$1, hit during intraday trade Wednesday, dealers said.  

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Indian rupee rescued from falling under 72/$; Cost? About $2 billion
The Reserve Bank of India (RBI) sold nearly $1.5-2 billion on Wednesday to save rupee from record low of Rs 71.95/$1. Image source: Reuters
Written By: Ria Matwani
Updated: Thu, Sep 06, 2018
09:52 am
ZeeBiz WebDesk
RELATED NEWS
For every rupee government earns, 53 paise to come from taxes For every rupee government earns, 53 paise to come from taxes
Rupee falls 24 paise to 73.48 against US dollar in early trade Rupee falls 24 paise to 73.48 against US dollar in early trade
CURRENCY IN CIRCULATION - Rise by Rs 3.23 lakh cr in first nine months of FY21; Know what people preferred in Covid times CURRENCY IN CIRCULATION - Rise by Rs 3.23 lakh cr in first nine months of FY21; Know what people preferred in Covid times
Rupee rises 7 paise to close at 73.24 a dollar Rupee rises 7 paise to close at 73.24 a dollar
Rupee slips 4 paise to 73.11 against US dollar in early trade Rupee slips 4 paise to 73.11 against US dollar in early trade

The Reserve Bank of India (RBI) sold nearly $1.5-2 billion on Wednesday to save rupee from record low of Rs 71.95/$1, hit during intraday trade Wednesday, dealers said.

“RBI’s intervention was around $1.5-2 billion in the local spot foreign exchange market to stem a sharp fall in the Indian currency. RBI sold dollars today to guard the rupee against crossing the Rs 72/$ mark decisively,” said a senior official with the foreign bank who do not wish to be identified.

India’s rupee owes its tag of Asia’s worst-performing currency this year to the selloff sweeping emerging markets. There’s more pain in store from beyond its borders.

While foreign currency debt has zoomed, various external vulnerability indicators paint a rather mixed picture, according to RBI annual report. Indeed, data due as early as next week will probably show the nation’s current-account deficit widened in the June quarter to 2.6% of the GDP, the highest in four and half years.

“Indian currency has not depreciated much compared to other emerging market currencies. The depreciation is due to global trade tensions,” the official added.

However, a dealer with a private sector bank has put the RBI intervention at around $1-1.5 billion for Wednesday. This intervention encouraged exporters to buy the Indian rupee, leading the local currency to pare some of its losses to end at Rs 71.75/$ on Wednesday.

The widening in the gap is the weakest spot for Asia’s third-largest economy and one of the reasons why the rupee has been among the worst-hit in Asia this year.

The sliding rupee and expectations of a faster-than-anticipated pace of monetary tightening by the US Fed saw more than $3 billion of foreign portfolio investments (FPI) moving out in the April-June period. Elevated oil prices and the trade tensions between the US and China contributed to the outflows.

Analysts at Nomura Holdings Inc. said India’s foreign exchange reserves at $401 billion are enough to cover eight months of imports. They are also about 1.8 times India’s short-term external debt, but down from nearly three times in 2008.

“Oil imports continue to pose a challenge to the trade deficit. Non-oil imports also remain high,” said Shashank Mendiratta, an economist with ANZ Banking Group in Bengaluru. “We are looking at 2.7% of GDP,” he said, referring to the current-account gap.

Some analysts including those at JPMorgan Chase & Co. and Commerzbank AG are expecting the RBI to raise borrowing costs sooner than later to shore up the currency. The central bank raised rates twice this year and is due to review policy in the first week of October.

India remains better prepared to face a depreciating rupee owing to the huge foreign exchange reserve of $401.29 that RBI holds as on August 24.

Besides the Indian rupee, other emerging market currencies such as Indonesian rupiah (down 10.10%), Turkish lira (down 75.19%), South African rand (down 25.42%), and Russian rouble (down 18.82%) also skidded against the dollar. —Agencies

Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.

TAGS:
Indian Rupee
RELATED NEWS
For every rupee government earns, 53 paise to come from taxes For every rupee government earns, 53 paise to come from taxes
Rupee falls 24 paise to 73.48 against US dollar in early trade Rupee falls 24 paise to 73.48 against US dollar in early trade
CURRENCY IN CIRCULATION - Rise by Rs 3.23 lakh cr in first nine months of FY21; Know what people preferred in Covid times CURRENCY IN CIRCULATION - Rise by Rs 3.23 lakh cr in first nine months of FY21; Know what people preferred in Covid times
Rupee rises 7 paise to close at 73.24 a dollar Rupee rises 7 paise to close at 73.24 a dollar
Rupee slips 4 paise to 73.11 against US dollar in early trade Rupee slips 4 paise to 73.11 against US dollar in early trade

LATEST NEWS

Mann Ki Baat Latest Episode: What all PM Narendra Modi said in his popular radio programme today - Know here

Homebuyers alert! Avoid real estate troubles by knowing these top 5 things before buying flat in 2021

Salaar Movie Prabhas: Release Date, Cast, Poster, Heroine - Confirmed! Another blockbuster from KGF makers?

Historic moment! New era of space reforms in India! PM Narendra Modi hails 1st dedicated commercial launch of PSLV-C51/Amazonia-1 Mission

Big insurance offers! 80-100 per cent discounts - All you need to know about renewal of health policies

Apple, Croma join hands on Steve Jobs' birth anniversary

REVEALED! This is the most preferred financial product to protect family post-COVID 19 pandemic

New Inbase smartwatch Urban LYF is here - Check features, offers, promo code and more

Sovereign Gold Bonds 2020-21 scheme: Check opening, closing dates and rates

'Improved economic environment to boost FY21 credit growth'

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
Copyright © Zee Media Corporation Ltd. All rights reserved