RBI sells $1.26 billion in forex market in May

The Reserve Bank of India’s (RBI) dollar sales were higher in the foreign exchange spot market in May than in April, data from the central bank showed on Tuesday.

The RBI sold $1.26 billion in May compared with $275 million in the

Is US the next Greece? Watch out for a dollar debacle

In what could only be described as a move “from the frying pan to the fire”, one of the consequences of the European crisis has been the increased demand for the Greenback. We have witnessed the dollar index strengthening to 82-plus, with a corresponding decline in commodities like gold and oil.

Most currencies also declined in this period—the Aussie and Canadian dollars

India Inc sees rupee at 58/dollar: Survey

Corporate India expects the rupee to weaken more, with a majority of 440 respondents in an ING Vysya survey of 220 organisations predicting the rupee could fall to as low as 58 to the dollar in the near-term.

Of the respondents, 15% did not rule out the rupee breaching below 60 to the dollar, ING Vysya says.

The majority in the survey say RBI rules relaxing FX regulations would not impact hedging plans.

Exporters seen unlikely to hedge more because of short-term expectations of weak rupee, as they will want to catch better levels and avoid mark-to-market losses, ING says. (curtsey : money control)

Rupesh Yatesh Dalal
Head Research Department

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