Indian rupee – The News Desk

No takers for rupee payment for oil imports: Oil ministry in Parliament

24Dec

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Business

No takers for rupee payment for oil imports: Oil ministry in Parliament

While there has been some success with non-oil trade with a select few countries, rupee continues to be shunned by oil exporters. India's push for rupee to be used to pay for import of crude oil has not found any takers as suppliers have expressed concern on repatriation of funds and high transactional costs, the oil ministry told a parliamentary standing committee. The default payment currency for all contracts for import of crude oil is US dollar as per the international trade practice. However, in a bid to internationalise the Indian currency, the Reserve Bank of India on July 11, 2022 allowed importers to pay with rupees and exporters be paid in rupee. While there has been some success with non-oil trade with a select few countries, rupee continues to be shunned by...

How rupee is expected to gain from India’s entry into a major global bond index

The inclusion of India in a major global bond index is expected to strengthen the rupee against its peers, despite the possibility of higher US interest rates affecting the appeal of emerging market assets. The Reserve Bank of India is likely to absorb some of the incoming dollar inflows to support export competitiveness. The stable flow of overseas funds is seen as a cushion against multi-year rise in US bond yields and increasing crude oil prices.While significant dollar inflows from index inclusion are not expected for around six months, the rupee's outlook remains constructive, especially in contrast to the depreciating Chinese yuan and Malaysian ringgit against the US dollar.JP Morgan recently announced that India would be added to its Government Bond Index Emerging Markets global in...

Rupee expected to weaken more to touch $83.5, may improve in Sept

The Indian rupee, which has depreciated 1.1 per cent so far in August, is expected to decline further on the back of a strengthening US dollar and a weakening Chinese yuan, according to a Business Standard poll of analysts. The Indian rupee hit an all-time low last week, closing at 83.15 per dollar on Thursday. Five of the 10 respondents said the Indian currency might touch 83.5 per dollar in August itself, while others said the worst could be over. The rupee closed at 83.11 on Friday. “We don’t think any further depreciation will be there. Maximum, it can go up to 83.25 a dollar. From next month, it will improve and should stabilise around 82.80 per US dollar,” said Arun Bansal, executive director and head of treasury at IDBI Bank. ...