Indian Rupee Steady after RBI Intervention

Indian Rupee Steady after RBI Intervention

04 Sep 2018 01:50 PM
 
Myforexeye Research Report
The rupee changed hands at 71.25 to a dollar, against 71.21 at previous close. It slumped to 71.38 earlier today before recouping losses on greenback sales by at least two state-run banks and a private lender, likely on behalf of the Reserve Bank of India, rising to 71.09. Most Asian currencies were trading lower against the greenback.

Apparent intervention by the central bank to arrest further decline in the rupee triggered stop losses and prompted traders to reverse their long-dollar positions. However, global sentiment remains weak and the outlook for local currency is still not very promising.”

The Mumbai-based dealer expects the rupee to trade in a 71.05-71.40 range for rest of the session.

Local markets were also spooked after a forum of foreign portfolio investors threatened that Indian capital markets could witness outflows to the tune of $75 billion if the SEBI circular issued in April to strengthen 'KYC' framework for foreign portfolio investors in order to prevent money laundering was not revoked.

The fund houses said these norms would add restriction on the investments. However, SEBI clarified the claim of $75 billion of FPI investment outflows due to circular as "preposterous and highly irresponsible.

 

 


Date : Sep-2018