The
Indian rupee extended its previous day gains on Wednesday, July 17,
2013 following measures by the RBI to curb volatility in the currency.
Besides, positive local shares also supported the unit. The domestic
currency opened higher by 18 paise at Rs 59.14 to a dollar and slipped
to a low of 59.22 before edging back to a high of 59.10 so far during
the day. In the spot currency market, the Indian unit was last seen
trading at 59.17, stronger by almost 16 paise or 0.26% as compared to
previous close at 59.32.
Indian government bonds slumped and interest rate swaps surged on Tuesday, while the rupee posted modest gains after the central bank took steps to rein in rupee liquidity, in a move that will raise interest rates in the economy. The RBI pushed up the rate at which it lends money to banks by 200 basis points to 10.25 per cent. The marginal standing facility, which is the rate at which banks borrow additional funds from the RBI, will now be at 10.25 per cent. Bonds and stocks plunged. The RBI also said that it will conduct Open Market Sales of Government of India Securities of Rs 12000 crore on Thursday, 18 July 2013. The RBI said it will continue to closely monitor the markets, the liquidity situation and the macroeconomic developments and will take such other measures as may be necessary, consistent with the growth-inflation dynamics and macroeconomic stability.
India will fully and safely fund its current account deficit this fiscal year without depleting its forex reserves, Finance Minister P. Chidambaram said on Tuesday. The deficit hit 4.8 percent of GDP in the previous fiscal year that ended in March. Chidambaram said he was confident of keeping the current account gap below last year's levels with some stern steps.
Meanwhile, domestic key benchmark indices edged higher in early trade boosted by government's decision on Tuesday, to relax overseas-investment rules for a number of sectors and as Asian shares inched higher. Foreign institutional investors (FIIs) sold Indian shares worth a net Rs 357.40 crore on Tuesday, 16 July 2013, as per provisional data from the stock exchanges. At the time of writing, the S&P BSE Sensex was up 71.83 points or 0.36% to 19,923.06 while the CNX Nifty was up 18.25 points or 0.31% to 5,973.50.
The dollar held a three-week low on expectations Federal Reserve Chairman Ben Bernanke will reiterate later in the day that U.S. monetary policy is to stay accommodative. The dollar stayed on the defensive in early Asian trade on Wednesday as investors suffered a case of cold feet ahead of Federal Reserve Ben Bernanke's semi-annual testimony in Congress later in the day. The euro rose to 1.31 to the dollar. The dollar index slipped below the 83 mark ahead of testimony by Federal Reserve Chief Ben Bernanke.
Source by Commodity Insights
Indian government bonds slumped and interest rate swaps surged on Tuesday, while the rupee posted modest gains after the central bank took steps to rein in rupee liquidity, in a move that will raise interest rates in the economy. The RBI pushed up the rate at which it lends money to banks by 200 basis points to 10.25 per cent. The marginal standing facility, which is the rate at which banks borrow additional funds from the RBI, will now be at 10.25 per cent. Bonds and stocks plunged. The RBI also said that it will conduct Open Market Sales of Government of India Securities of Rs 12000 crore on Thursday, 18 July 2013. The RBI said it will continue to closely monitor the markets, the liquidity situation and the macroeconomic developments and will take such other measures as may be necessary, consistent with the growth-inflation dynamics and macroeconomic stability.
India will fully and safely fund its current account deficit this fiscal year without depleting its forex reserves, Finance Minister P. Chidambaram said on Tuesday. The deficit hit 4.8 percent of GDP in the previous fiscal year that ended in March. Chidambaram said he was confident of keeping the current account gap below last year's levels with some stern steps.
Meanwhile, domestic key benchmark indices edged higher in early trade boosted by government's decision on Tuesday, to relax overseas-investment rules for a number of sectors and as Asian shares inched higher. Foreign institutional investors (FIIs) sold Indian shares worth a net Rs 357.40 crore on Tuesday, 16 July 2013, as per provisional data from the stock exchanges. At the time of writing, the S&P BSE Sensex was up 71.83 points or 0.36% to 19,923.06 while the CNX Nifty was up 18.25 points or 0.31% to 5,973.50.
The dollar held a three-week low on expectations Federal Reserve Chairman Ben Bernanke will reiterate later in the day that U.S. monetary policy is to stay accommodative. The dollar stayed on the defensive in early Asian trade on Wednesday as investors suffered a case of cold feet ahead of Federal Reserve Ben Bernanke's semi-annual testimony in Congress later in the day. The euro rose to 1.31 to the dollar. The dollar index slipped below the 83 mark ahead of testimony by Federal Reserve Chief Ben Bernanke.
Source by Commodity Insights
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