Subhadip's Feed
Nov 18, 2013

India pushes to develop money markets

MUMBAI (Reuters) – The era of easy money for Indian banks may be coming to an end. Unlimited access to cheap overnight funding from the Reserve Bank of India (RBI) was tightened mid-year as part of measures to support a plunging rupee, and now the central bank is keen to use the restrictions to help it deepen money markets.

The ability of banks to continuously tap funds through the central bank’s Liquidity Adjustment Facility (LAF) lowers their need to raise cash in the markets, which has thwarted the development of a proper money-market yield curve.

Nov 18, 2013

The end of easy money: India pushes to develop money markets

MUMBAI (Reuters) – The era of easy money for Indian banks may be coming to an end.

Unlimited access to cheap overnight funding from the Reserve Bank of India (RBI) was tightened mid-year as part of measures to support a plunging rupee currency, and now the central bank is keen to use the restrictions to help it deepen money markets.

Nov 14, 2013

Rupee gains as inflation continues to worry investors

MUMBAI (Reuters) – The rupee rose on Thursday after suspected RBI intervention to prop up a currency wounded after data showing accelerating inflation threatened to further undermine confidence in an economy growing at its lowest pace in a decade.

The data is also raising prospects of India entering a dangerous cycle where a weaker currency creates more inflation, which in turn hits confidence and further depresses the rupee.

Nov 14, 2013

Inflation continues to worry Indian investors

MUMBAI (Reuters) – The rupee rose on Thursday after suspected central bank intervention to prop up a currency wounded after data showing accelerating inflation threatened to further undermine confidence in an economy growing at its lowest pace in a decade.

The data is also raising prospects of India entering a dangerous cycle where a weaker currency creates more inflation, which in turn hits confidence and further depresses the rupee.

Nov 14, 2013

Rupee recovers as RBI chief, Fed provide comfort

MUMBAI (Reuters) – The rupee gained on Thursday as comments from nominee for Federal Reserve chair Janet Yellen and Reserve Bank of India governor Raghuram Rajan delivered a two-dose boost of optimism for a currency that had fallen to a two-month low.

Yellen on Wednesday said the U.S. central bank has “more work to do” to help an economy and labour conditions that are still under-performing, while Rajan sought to temper concerns about India’s own economy and about the threat posed by the return of dollar demand by oil companies into markets.

Nov 14, 2013

Indian rupee recovers as central bankers provide comfort

MUMBAI, Nov 14 (Reuters) – The rupee gained on Thursday as
comments from nominee for Federal Reserve chair Janet Yellen and
India’s central bank governor Raghuram Rajan delivered a
two-dose boost of optimism for a currency that had fallen to a
two-month low.

Yellen on Wednesday said the U.S. central bank has “more
work to do” to help an economy and labour conditions that are
still under-performing, while Rajan sought to temper concerns
about India’s own economy and about the threat posed by the
return of dollar demand by oil companies into markets.

Nov 13, 2013

Oil import needs return to haunt weakening rupee

MUMBAI (Reuters) – Barely a month after the rupee hit a two-month high and showed signs of stabilising after its brutal fall this year, the currency is at risk from a re-emergence of heavy demand for dollars from oil importing firms.

As the rupee hit a nine-week low against the dollar on Wednesday, extending its drop over four trading sessions to 2 percent, the overriding fear in Indian markets was the return of dollar buying by oil companies, coupled with concerns the Reserve Bank of India (RBI) will soon wind down a special dollar facility for these firms.

Nov 13, 2013

Oil import needs return to haunt India’s weakening rupee

MUMBAI, Nov 13 (Reuters) – Barely a month after the Indian
rupee hit a two-month high and showed signs of stabilising after
its brutal fall this year, the currency is at risk from a
re-emergence of heavy demand for dollars from oil importing
firms.

As the rupee hit a 9-week low against the dollar on
Wednesday, extending its drop over four trading sessions to 2
percent, the overriding fear in Indian markets was the return of
dollar buying by oil companies, coupled with concerns the
central bank will soon wind down a special dollar facility for
these firms.

Nov 12, 2013

Rupee falls for 5th day; importers’ dollar demand

MUMBAI (Reuters) – The rupee fell to a near nine-week low on Tuesday, extending its losses for a fifth session, on the back of continued greenback demand from importers amidst a strengthening U.S. currency in global markets.

Traders also attribute the rupee’s weakness to the return of state-run oil refiners, which are now sourcing part of their dollar needs in markets and not through the special window provided by the central bank in late August.

Nov 8, 2013

Rupee posts worst week in 2-1/2 months; oil dollar demand back

MUMBAI (Reuters) – The rupee fell on Friday to post its worst week in 2-1/2 months, tracking a weaker euro after a surprise rate cut by the European Central Bank and as state-run oil refiners started sourcing dollars in spot markets.

State-run oil refiners are now meeting 30-40 percent of their dollar needs in markets, Economic Affairs Secretary Arvind Mayaram was quoted as saying on Thursday by television channels, instead of the special window provided by the central bank.