Skip to main content

The Indian Rupee has reached a new low of 76.98 against the US dollar.

The Rupee Is Increasing Its Weakness The rupee's depreciation is being fueled by four factors: rising oil prices, a dollar shortage, relentless outflows from equity with a risk of spillover to debt, and the unwinding of the carry trade, according to Anindya Banerjee, Kotak Securities' deputy vice president for currency derivatives and interest rate derivatives. 


Unwinding the carry trade, in particular, has the potential to have a far larger impact on the dollar-rupee exchange rate, which is why the RBI is engaging aggressively, Banerjee explained. "Once the rupee sustains itself at 77, the next target is 78 sometime this week, barring a reversal in the oil price," he said.

Given the persistent pressure, the rupee could trade in a band of 76.30-77.30 in the near term, according to Reliance Securities' currency research team. Harihar Krishnamoorthy, FirstRand Bank's treasurer, agrees that the rupee's depreciation would remain. "Clearly, this is a cause-and-effect situation. In the midst of the ongoing Russia-Ukraine war, there are now discussions of a Russian oil and gas embargo. These have been exempt from sanctions thus far, and if they are, there will be a supply shortage "According to Krishnamoorthy. "The rupee's weakness is certain to continue if foreign outflows continue and oil prices continue to rise."


Visit IPOINFO

Labels:

Popular posts from this blog

Bikaji Foods International Limited IPO

  Bikaji Foods International Limited is one of   India's largest fast-moving consumer goods ("FMCG") brands . The company's product range includes six principal categories: bhujia, namkeen, packaged sweets, papad, western snacks as well as other snacks which primarily include gift packs (assortment), frozen food, mathri range and cookies. In the six months that ended June 30, 2022, the company sold more than 300 products under the Bikaji brand. The company was the largest manufacturer of Bikaneri bhujia with an annual production of 29,380 tonnes, and we were the second largest manufacturer of handmade papad with an annual production capacity of 9,000 tonnes in Fiscal 2022. The company has an international footprint, selling Indian snacks and sweets, and is among the fastest-growing companies in the Indian organized snacks market. The company has over the years established market leadership in the core states of Rajasthan, Assam and Bihar with an extensive reach. It ha...
Read more

PNB Housing Finance gains as its board of directors accepts a financing plan.

PNB Housing Finance stock rose 4% in morning trading on March 10; a day after the company’s board of directors approved fundraising. Source: IPOINFO “The board of directors of PNB Housing Finance accepted the proposal of fund-raising up to; an amount not exceeding Rs 2,500 crore at its meeting held on March 09, 2022,” the business said in a press release. The fundraise is subject to regulatory approvals and will be done by issuing equity shares on a right-issue basis to the company’s eligible equally shareholders as of the record date (to be notified subsequently) The exact terms in respect to the rights issue, including but not limited to the issue price; rights entitlement ratio, record date, time, and payment terms, will be determined in due course, according to the statement. PNB Housing Finance was trading at Rs 423.80 on the BSE at 10:06 a.m., up Rs 3.45, or 0.82 percent. On June 8, 2021, the stock hit a 52-week high of Rs 924; on April 19, 2021, it hit a 52-week low of Rs 350. I...
Read more

MF investors load up on equity mutual funds in March, dump bond funds

Equity mutual funds have closed the financial year 2022-2023 on a mixed note. Equity schemes of Indian mutual funds saw net inflows of Rs 28,463 crore in March 2022 compared to net inflows of Rs 19,705 crore in the previous month. The overall assets under management remained almost flat at Rs 37.56 lakh crore as on March 31, 2022, due to outflows from bond funds. Systematic investment plan (SIP) has been a preferred means for investing in mutual funds especially in equity funds for most individual investors. SIP contribution for the month of March 2022 was recorded at Rs 12,327 crore compared to Rs 11,438 crore in the previous month. The number of SIP accounts has gone up to 5.27 crore in March 2022 compared to 5.17 crore in February 2022. Index funds have seen net inflows of Rs 12,313 crore in March 2022 compared to net inflows of Rs 5,747 crore in the previous month. All open-ended equity scheme categories have seen net inflows in March 2022. A large chunk of money however c...
Read more