Rupee dives to 54.91, recovers
PrintListen to this Article
The rupee on Friday hit a new low of 54.91 to the dollar in afternoon trade, hitting the third consecutive record low in three days, but recovered shortly to trade at 54.71.
The tumble came on increased capital outflows and strong demand from importers for the American currency. Traders said that apart from capital outflows by foreign funds, strengthening of the dollar against the euro, which plunged to a four-month low following renewed worries over deepening euro zone debt crisis, put pressure on the rupee.
Traders are now watching the 55 to the dollar level closely.
There has also not been any significant intervention from the Reserve Bank of India in the past two days. The central bank has made it clear that it will only step in to manage volatility but that the value of the rupee would have to be market-driven.
Markets, however, are still expecting about $2.5 billion-$3 billion inflows before the end of the month, and are ignoring the fall in oil prices for now.
Barclays Capital on Friday said it expects the spot rupee to hit 56 in one month and then subsequently rise only to 54 within three months.
BarCap cites 'high' sensitivity to global market sentiment, 'limited' appetite for the RBI intervention and 'weak' macro fundamentals, in a report dated May 17.
The rupee will gain to 48/dlr in one year, BarCap forecast.
BarCap's near-term rupee view is much more bearish than a Reuters poll this week, which shows consensus forecast at 53.41 by end of June.
On Thursday, the rupee had touched an intra-day record low of 54.60 before settling at Rs 54.47 against the US dollar.
Meanwhile, the BSE benchmark Sensex plunged to below the 16,000 mark but pulled back in the afternoon on Friday. (NDTV)
Category : International Business | Comments : 0 | Hits : 294
Chartered accountants from the UK and Canada might be allowed to practice in India on a reciprocal basis, with the apex body ICAI making the proposal to the Government. ICAI President Ranjeet Kumar Agarwal, on February 21, said the proposal will be implemented strictly on the reciprocal basis that chartered accountants (CAs) from India will also be allowed to practice in the United Kingdom and Canada. It will be the first time that overseas CAs will be allowed to practice in India. The pro...
The tax department is considering a proposal under which credit card holders will have to file a declaration with the issuer entity within a stipulated time, specifying the nature of expenses incurred in foreign currency for the purpose of TCS levy, sources said. The I-T department is in talks with the RBI and other stakeholders to firm up a mechanism for distinguishing whether the expense is towards medical/education which attract a 5 per cent TCS or for other purposes on which a 20 per cent...
Concerns have been raised about the applicability of Tax Collection at Source (TCS) to small transactions under the Liberalized Remittance Scheme (LRS) from July 1, 2023. To avoid any procedural ambiguity, it has been decided that any payments by an individual using their international Debit or Credit cards upto Rs 7 lakh per financial year will be excluded from the LRS limits and hence, will not attract any TCS. Existing beneficial TCS treatment for education and health payments will also co...
The ministry on May 16 notified the Foreign Exchange Management (Current Account Transactions) (Amendment) Rules, 2023, to include international credit card payments in the LRS. Any remittance beyond USD 2.5 lakh or its equivalent in foreign currency would require approval from the RBI. Earlier, the usage of international credit cards (ICCs) for making payments for fulfilling expenses during travel outside India was not included in the LRS limit. According to the notification, the Finance ...
Canada’s immigration minister Sean Fraser has announced Express Entry invitations to FSWP and CEC candidates will resume by “early July 2022” The vast majority of new Express Entry applications will be processed within the six-month service standard. According to IRCC, current Express Entry processing times range from seven months to in excess of 20 months. Summary of Canada's Immigration Levels Plan Each year, the federal department of Immigration, Refugees ...
Comments