Reserve Bank of India (RBI) feels that foreign units of Indian companies and foreign companies in which part of equity is held by Indian firms have a role to play in the depreciation of rupee against the dollar. The central bank feels that these entities may be taking speculative position in the non-deliverable forward (NDF) market resulting in the depreciation of rupee against the
Tag: rupee
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Import bill for crude oil set to rise
India's import bill for crude oil is expected to rise sharply despite the fall in the international price of the fuel in recent months, because of depreciation in rupee. The global price of crude oil declined almost 10 percent since January 2013. However, the import bill of the country may rise because of depreciation rupee against the dollar, reports indicate
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Secondary steel firms take hit due to weakening rupee
The cost of imported raw material for secondary steel producers in the country rose owing to the recent sharp depreciation in the Indian currency. Secondary steel producers import steel scrap and coking coal, besides other things. The exchange rate of rupee depreciated up to Rs 60 per dollar thereby raising the imported raw material cost of companies. Some reports indicate that the secondary steel units conc
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Essar Steel raises $1 bn via ECB
In order to reduce interest cost, Essar Steel decided to swap rupee debt with dollar loans. As part of this initiative, the flagship firm of Ruia Group raised $1 billion through external commercial borrowings (ECB), thereby saving interest cost by at least 6 percent or 450 crore. Banks led by IDBI and ICICI Bank subscribed to the ECB. The company is making attempt to convert its rupee liabilities into dollar as its earnings are in
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Indian rupee hits record low against dollar
In a recent trading session, the Indian rupee depreciated beyond the Rs 60 per dollar level owing to strong demand from importers. The Indian currency is learnt to have declined to Rs 60.76 per dollar in a recent trading session. In the month of June, the currency weakened 7 percent against the US dollar and 12 percent since May 1. Some market expects expect rupee to fall to 61-62 against dollar in the short term. However, they expect the weakening of the rupee to be temporary because in longer
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Rupee hits another record low against dollar
The Indian rupee hit a record low of 59.9850 against US dollar in a recent trading session as foreign investors continue to pull out of their investment in the Indian stock market and bonds. With the considerable depreciation in the Indian rupee, traders are expecting the Reserve Bank of India to step in to sell dollars to arrest further weakening. The Indian currency depreciated 11 percent since May 2013. This will adve
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OMCs raise petrol price 2nd time in June
Considering the weakening of the Indian currency against the dollar, state-run oil marketing companies (OMCs) raised the price of petrol by Rs 2 a litre recently. This is the second increase in the price of the auto fuel this month as the cost of crude oil import has risen following the depreciation of rupee. On June 1, OMCs raised price of petrol by 75 paisa, excluding VAT
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Govt to announce more economic reforms to revive growth
Union Finance Minister informed that the government would unleash more economic reforms in the coming days and weeks in order to rev up the investor sentiment and spur growth momentum. The government is expected to expedite implementation of around 40 projects out of the 250 private sector projects that can quickly take off the ground and, thereby, boost economic growth, reports indicate
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Rupee weakness to hit infra projects funded via ECBs
India Ratings & Research (Ind-Ra) said the ongoing depreciation of rupee against the dollar is eroding the cost advantage of external commercial borrowing (ECB) for domestic infrastructure projects. companies preferred to raise funds through ECB as interest rate charged on such loan is cheaper that credit in the local market
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Weakening rupee may prod OMCs to raise petrol price
Owing to the sharp depreciation of rupee against the dollar, Oil marketing companies (OMCs) may hike the price of petrol Rs 1.5-2 per litre, industry sources informed. In recent trading sessions, the Indian currency declined to a record low of 58.96 against the dollar because of global financial market developments. The weakening of rupee in the last four weeks caused Rs 20,000 crore of under-recoveries for state-run OMCs, medi