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Exporters take advantage of rise in price, rupee weakness

Exporters take advantage of rise in price, rupee weakness

Mining firms are exporting iron ore in a big way on the back of increase in the price of the commodity in the global market and depreciation of rupee. Many miners are exporting iron ore fines and pellets to China as the price of the commodity rose considerably in recent days. Sources indicate that the prices of pellets rose from Rs 6,200 per tonne a month ago to Rs 6,700 per t

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Rupee weakness puts upward pressure on interest rates

Rupee weakness puts upward pressure on interest rates

Interest rate in India is rising on the back of the steep decline in the value of rupee against the dollar in recent months. Experts feel that the depreciating rupee raises domestic interest rate through three ways. First, in order to discourage speculation in the currency market, Reserve Bank of India (RBI) tightens liquidity and raises shor

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Price of crude oil rises due to rupee weakness

Price of crude oil rises due to rupee weakness

The steep decline in the value of Indian currency raised the price (in rupee terms) of crude oil imported by India. Further, global factors like higher demand, low OPEC spare capacity and improved economic outlook for 2013 raised the price of crude oil in dollar terms. For example, the Brent crude oil futures rose to a two-year high of $110.51 a barrel recently. Brent for sweet grad

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Govt mulls overseas debt issuance by PSUs

Govt mulls overseas debt issuance by PSUs

The Indian government is mulling various steps to prevent further depreciation of rupee against the dollar. One of the steps considered by the government is to ask financially strong state-run companies to raise debt from overseas investors. According to one estimate, state-run companies could raise $25-30 billion of capital through issue of bond

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Govt mulls overseas debt issuance by PSUs

Govt mulls overseas debt issuance by PSUs

The Indian government is mulling various steps to prevent further depreciation of rupee against the dollar. One of the steps considered by the government is to ask financially strong state-run companies to raise debt from overseas investors. According to one estimate, state-run companies could raise $25-30 billion of capital through issue of bond

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Indian rupee may trade in 58-62 range

Indian rupee may trade in 58-62 range

Indranil Sen Gupta, India Economist at DSP Merrill Lynch (India) expects the Indian currency to trade in the range of 58-62 against the US dollar at the cost of 50 basis points of economic growth. This assumes that the July 23 measures are reversed before the busy October-March season, Gupta

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RBI to restore stability in currency mkt on priority

RBI to restore stability in currency mkt on priority

In its a macroeconomic report, Reserve Bank of India (RBI) said the priority for monetary policy now is to restore stability in the currency market so that macro-financial conditions remain supportive of growth. RBI said global currency market movements in June-July 2013 prompted a re-calibration of monetary policy. The report, which was released a day before the first quarter monetary policy review of RBI, shows the central bank

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Foreign exchange reserves declines $0.98 bn to $279.20 bn

Foreign exchange reserves declines $0.98 bn to $279.20 bn

For the week ended July 19, India's foreign exchange reserves stood at $279.20 billion, down $0.985 billion, data from Reserve Bank of India (RBI) shows. In the previous reporting week, the total reserves rose $21 million to $280.19 billion. Foreign currency assets, a major component of the forex reserves declined $999 millio

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Banks may not raise rates despite RBI move

Banks may not raise rates despite RBI move

Even as some analysts are reading the recent steps by the Reserve Bank of India (RBI) to stem depreciation of rupee as monetary tightening, several banks are thinking otherwise. In order to curb speculative position in foreign exchange market and also to promote investment in rupee debt instruments, RBI hiked the rate on borrowing from marg