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Rupee drops to 86.34 amid global tensions and dollar strength. Rising crude prices and weak equity sentiment add pressure.

Rupee Falls to 86.34 Amid Global Market Pressure

Amid rising global tensions and crude prices, the rupee dropped to 86.34. The US dollar strengthened, and weak equity sentiment added pressure.

The rupee fell by 30 paise to 86.34, driven by global tensions and rising crude prices. The strengthening US dollar and weak equity sentiment contributed to this drop.

The rupee declined 30 paise to close at 86.34 against the greenback on Tuesday, weighed down by a rise in global crude oil prices amid the escalating Iran-Israel war and a strengthening dollar.
Weak sentiments in the domestic equity markets put further pressure on the rupee, according to forex traders.
At the interbank foreign exchange, the rupee opened at 85.96 against the US dollar and traded in the range of 85.89-86.34. It finally settled at 86.34, down 30 paise from its previous close.
The rupee had closed at 86.04 against the rupee on Monday.
"As the rupee closes below 86.20, we can expect it to fall to 86.70 levels before any recovery. Dollar selling has been restricted for now with the war and is taking a toll on risk, and the greenback is getting bought as the tariff issue becomes secondary. Trump also said pharma tariffs will be coming soon, spooking pharma stocks of India and FPIs selling continuously," Anil Kumar Bhansali, Head of Treasury and Executive Director, Finrex Treasury Advisors LLP, said.
"Conflicts in Europe and the Middle East have intensified. The US has an unsustainable debt while there is unrest due to the deportation of illegal immigrants in the US. All negative factors have been helpful in keeping risk assets away, taking the rupee lower as it closed at 86.24," he said, adding that the rupee could be in the range of 85.80-86.50 on Wednesday.
The prices of Brent crude -- the global oil benchmark -- rose 1.60 per cent to 74.40 per barrel in futures trade after rising sharply over the past few days, owing to the escalating Israel-Iran conflict.
In the domestic equity market, the 30-share BSE Sensex declined 212.85 points to settle at 81,583.30, while Nifty was down 93.10 points to 24,853.40.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was up 0.20 per cent to 98.19.
According to the monthly data released by the Ministry of Statistics &amp; Programme Implementation on Monday, the rate of unemployment in the country rose to 5.6 per cent in May from 5.1 per cent in April this year, mainly due to seasonal variation.
Foreign institutional investors (FIIs) bought equities worth Rs 1,482.77 crore on a net basis on Tuesday, according to exchange data.

The rupee fell to a record low of 85.80 before recovering slightly due to central bank intervention. Increased month-end demand, foreign fund outflows, and rising crude oil prices pressured the currency.

Rupee falls 23 paise to hit fresh record low of 85.50 against US dollar

The unit finally ended the session at 85.50 (provisional) against the greenback, losing 23 paise from its previous closing level of 85.27.

The rupee fell steepest in almost two years to hit its lifetime intraday low of 85.80 before a suspected central bank intervention helped recover some of its losses and settled 23 paise lower at a record low of 85.50 (provisional) against the US dollar on Friday due to a strong greenback amid increased month-end demand from banks and importers.
According to analysts, the Reserve Bank's stance to hold on to its dollar payments in short-term forward contracts added to the shortage of greenback, with importers rushing to meet their month-end payment obligations.
Despite robust sentiment in domestic equity markets, the rupee was weighed down by sustained outflow of foreign funds and rising crude oil prices, they added.
At the interbank foreign exchange, the rupee opened weak at 85.31 and plunged 53 paise to the lowest-ever intraday level of 85.80.
The unit finally ended the session at 85.50 (provisional) against the greenback, losing 23 paise from its previous closing level of 85.27.
The rupee's earlier sharpest one-day fall of 68 paise was recorded on February 2, 2023.
The domestic unit has been hitting new lows almost every day in the past couple of weeks. It had plunged 12 paise to 85.27 against the dollar on Thursday after declining 13 paise in the previous two sessions.
"The central bank holds USD 21 billion in short-side forward contracts set to mature in December and January. Market speculation suggests that the RBI has refrained from rolling over these maturing forwards, leading to a scarcity of dollars and an oversupply of rupees.
"Moreover, dollar liquidity in the market remains very low, amplifying the upward momentum in the pair. This imbalance has propelled the USD-INR pair towards 85.8075 levels," said Amit Pabari, MD of CR Forex Advisors.
According to Anuj Choudhary &ndash; Research Analyst at Mirae Asset Sharekhan, the rupee hit a record low on dollar demand from importers towards the end of the month and outflows from foreign investors (FIIs).
"Rising US treasury yields and crude oil prices also weighed on the rupee," he said and projected the USD-INR spot price in a range of Rs 85.30 to Rs 85.85, saying traders may take cues from goods trade balance data from the US.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading higher by 0.04 per cent at 107.94, while the 10-year benchmark US Treasury yield rose 0.76 per cent, hitting its seven-month high level of 4.61 per cent.
Brent crude, the global oil benchmark, rose 0.15 per cent to USD 73.37 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex settled 226.59 points or 0.29 per cent higher at 78,699.07 points, while Nifty went up 63.20 points, or 0.27 per cent to close at 23,813.40 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth Rs 2,376.67 crore, according to exchange data.

The Indian rupee recovered 10 paise to close at 85.03 against the US dollar, supported by potential RBI intervention and easing crude oil prices. 

Rupee Recovers 10 Paise, RBI Intervention and Dollar Index Aid

The Indian rupee recovered 10 paise to close at 85.03 against the US dollar, supported by potential RBI intervention and easing crude oil prices. Traders anticipate continued volatility as the dollar index remains elevated and foreign institutional outflows persist.

On Thursday, the rupee depreciated 19 paise and breached the crucial 85 level to close at a fresh all-time low of 85.13 against the US dollar.

The rupee saw some recovery from its all-time low level and appreciated 10 paise to close at 85.03 (provisional) against the US dollar on Friday, on softening of the US dollar index and a potential intervention by the Reserve Bank of India (RBI).
Forex traders said the rupee is likely to remain in a weakening mode due to significant dollar demand. The Dollar Index (DXY) is expected to remain elevated, with resistance near the 110 level in the near-term amid a reduced likelihood of significant Fed rate cuts in 2025.
The Federal Reserve cut rates by 25 basis points on Wednesday, but its forward guidance for 2025 has softened, with expectations reduced from four rate cuts to just two.
At the interbank foreign exchange, the rupee opened at 85.07 against the greenback. During the day it witnessed an intraday high of 84.95 and a low of 85.12 before ending the session at 85.03 (provisional) against dollar, higher by 10 paise over its previous close.
On Thursday, the rupee depreciated 19 paise and breached the crucial 85 level to close at a fresh all-time low of 85.13 against the US dollar.
Traders said the rupee recovered from lower levels in the latter half of the day on softening of the US dollar index and a potential intervention by the Reserve Bank of India (RBI). A decline in crude oil prices also supported the rupee at lower levels.
"We expect the rupee to trade with a negative bias on weak domestic markets and overall strength in the US dollar amid a hawkish Fed and improved US economy," Anuj Choudhary &ndash; Research Analyst at Mirae Asset Sharekhan, said.
Choudhary further added that FII outflows may also weigh on the rupee. However, any intervention by the RBI or any further correction in crude oil prices may support the rupee at lower levels.
"Traders may take cues from core PCE price index, personal spending and revised consumer sentiment data from the US. USD-INR spot price is expected to trade in a range of 84.80 to 85.15," he said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading lower by 0.14 per cent at 108.26.
Brent crude, the global oil benchmark, fell 0.99 per cent to USD 72.16 per barrel in futures trade.
In the domestic equity market, the 30-share BSE Sensex closed 1,176.46 points, or 1.49 per cent, down at 78,041.59 points, while Nifty settled down 340.10 points, or 1.42 per cent to 23,611.60 points.
Foreign Institutional Investors (FIIs) were net sellers in the capital markets on Thursday, as they offloaded shares worth Rs 4,224.92 crore, according to exchange data.

The rupee weakened to Rs 83.53 against the dollar as BJP may fall short of majority. Sensex and Nifty dropped over 5%. Market volatility is expected to remain high, with advice for exporters and importers to hedge at specific levels

Lok Sabha elections result: Rupee weakens against Dollar as BJP falls short of majority

<h2>The rupee weakened to Rs 83.53 against the dollar as BJP may fall short of majority. Sensex and Nifty dropped over 5%. Market volatility is expected to remain high, with advice for exporters and importers to hedge at specific levels</h2>

The Indian Rupee slumped against the US dollars on Tuesday as the Lok Sabha election results trend showed BJP to fall short of majority. Rupee weakened 38 paise to close at Rs 83.53 against the US dollar, after opening at Rs 83.38. The rupee had closed at Rs 83.14 on Monday.
<h3>Rupee falls</h3>
Meanwhile, the dollar index dropped to 104.09, while US 10-year yields fell to 4.41%. The oil barrel prices also declined by over $2 per barrel, reaching multi-month lows. The drop in oil prices comes due to investor concerns over demand trajectory.
Sensex and Nifty witnessed deep cuts, closing at over 5% lower each.&nbsp;
Meanwhile, as per NDTV Profit, analysts expect market volatility to remain high in light of the election trends.
"Exporters are advised to take hedges at current levels of Rs 83.41 and importers are advised to take hedges below Rs 82.20 levels," Mecklai Financial wrote.
NDTV Profit also quoted Amit Pabar of CR Forex Advisors who concurred on the relationship between market volatility and election results.
"Well, what needs to be observed is whether the expected seats are secured by the ruling government to keep the euphoria alive. Anything less than expected can hurt sentiments in the short term and add pressure on the rupee," he wrote
Also watch: <a href="https://www.editorji.com/business-news/lok-sabha-poll-results-sensex-nifty-tumbles-5-to-log-the-worst-session-in-over-4-years-1717500508484">Lok Sabha Poll results: Sensex, Nifty tumbles 5% to log the worst session in over 4 years</a>
&nbsp;

Bangladesh, Sri Lanka, number of other countries want to start rupee trade with India: Goyal

Find out why Bangladesh, Sri Lanka, and other nations want to initiate Rupee trade with India

<h2>Bangladesh, Sri Lanka, number of other countries want to start rupee trade with India: Goyal</h2>

Many developed and developing countries including Bangladesh, Sri Lanka, and nations of the Gulf region are keen to start trade in rupee with India as it would help cut transaction costs for businesses, Commerce and Industry Minister Piyush Goyal has said.
He expressed confidence that the development is going to be a "very game-changing" dimension to India's international trade.
"Bangladesh, Sri Lanka are already talking to us and they want us to start this immediately. Other countries in the Gulf region are looking at that. I think it'll take some time for people to see the benefits. And then we'll have more and more developed countries and countries in the Far East also joining the bandwagon. Singapore is already on board to some extent," he said.
The minister added that gradually countries are realising that undertaking trade in domestic currencies has several advantages.
The minister said that it is now picking up traction and a lot of countries have come forward for this arrangement and are talking to India for that as they would also like to initiate direct transactions between their local currency and the rupee.
"Gradually the conscience is setting in that rather than converting all the transactions into a third currency, both ways, adds significantly to transaction costs," Goyal told PTI in an interview.
Undertaking trade in other currencies leads to foreign exchange and transaction losses as there is a cost for conversion. The delays in the movement of money also pushed transactors' costs.
"We started with the UAE. The UAE was one of the first countries to accept this. It's now picking up traction. We get a lot of countries who come and talk to us that they would like to also initiate direct transactions between the local currency and the rupee.
"It's a process which takes time. It involves the central bankers of both nations to create the framework and then it evolves acceptance by importers and exporters," Goyal said, adding "when it will take off, it'll just fly".
The engagement is also beneficial as the Indian Rupee is mostly stable against most of the international currencies and according to experts, this is one of the reasons that different nations today want to have trade relations built on rupee trade.
The rupee trade is also helping many of the countries, which have dollar shortages.
India has started trade in the rupee with neighbouring countries, including Nepal and Bhutan. The rupee trade mechanism has been initiated to facilitate trade in national currency with Russia, while Sri Lanka has included the rupee in its list of designated foreign currencies.
India's first-ever payment in rupees for crude oil purchased was from the UAE and that is helping the world's third largest energy consumer to push for taking the local currency global, as it looks for similar deals with other suppliers.
Changes have been made in the FTP (Foreign Trade Policy) to allow international trade settlement in Indian Rupee with a view to making INR a global currency.
In July 2022, the Reserve Bank of India (RBI) decided to allow the settlement of India's international trade in rupee. Accordingly, authorised Indian banks are permitted to open and maintain special rupee Vostro accounts of the partner trading country's banks.
These accounts keep the foreign bank's holdings in the Indian counterpart in rupees. When an Indian trader wants to make a payment to a foreign trader in rupees, the amount will be credited to this Vostro account.
Similarly, in the reverse scenario, the amount to be paid to an Indian trader is deducted from the Vostro account, and credited to the person's regular account.

While the Rupee depreciated 9 paise against the USD to settle at 83.33, the dollar index traded 0.2% higher on Wednesday

Rupee hits record low of 83.33 against the US dollar

<h2>While the Rupee depreciated 9 paise against the USD to settle at 83.33, the dollar index traded 0.2% higher on Wednesday</h2>

The Indian Rupee depreciated 9 paise and hit record low of 83.33 against US dollar on Wednesday, driven by elevated US Treasury yields and weakness among its Asian peers.
<h3>Rupee vs US Dollar</h3>
Rupee fell to a low of 83.2950, slipping past its previous lifetime low of 83.29 hit in October last year. Besides the elevated US Treasury yields, a negative trend in domestic equities and elevated crude oil prices amid geopolitical uncertainty in the Middle East too weighed on investor sentiments.
Also Read: <a href="https://www.editorji.com/business-news/state-run-oil-companies-slash-jet-fuel-prices-easing-operational-costs-for-domestic-carriers-1698816430338">State-run oil companies slash Jet Fuel prices, easing operational costs for domestic carriers</a>
As per PTI, the rupee opened at 83.26 against the dollar at the interbank foreign exchange. During the trading session, it touched an intra-day low of 83.35 and a high of 83.26 against the American currency
On Tuesday, the rupee settled at 83.24 against USD. Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.2% higher at 106.87.

After depreciating for the fourth straight day, the rupee has hit an all time low of 83.23 against the US dollar on Thursday

Rupee hits all-time low of 83.23 against US dollar

After depreciating for the fourth straight day, the rupee has hit an all time low of 83.23 against the US dollar on Thursday

The rupee depreciated for the fourth straight day on Thursday to settle 10 paise lower at its lifetime low of 83.23 against the US dollar amid a firm American currency and foreign capital outflows.
Besides, elevated crude oil prices in the international market weighed on investor sentiments, according to forex traders.
A positive trend in the domestic equity markets, however, provided a cushion to the rupee, traders said.
"The rupee continued to remain under pressure and weakness prevailed after disappointing trade balance data from China. Weakness in the rupee was also triggered by weakness in the Chinese Yuan, which fell to the lowest level in the last one year.
"Today, the focus will be on the weekly Jobless claims number from the US. We expect the USD/INR (Spot) to trade sideways with a positive bias and quote in the range of 83.05 and 83.40," Gaurang Somaiya -- forex and bullion analyst Motilal Oswal Financial Services -- said.
Crude oil breached the USD 90 per barrel mark after oil-producing countries agreed to extend the supply cut till December this year while the dollar stayed firm on safe-haven demand.
At the interbank foreign exchange, the domestic unit opened at 83.15 against the dollar and traded in the range of 83.12 to 83.23 against the greenback. It ended at the record low of 83.23 against the dollar, registering a fall of 9 paise from its previous close.
On Wednesday, the rupee settled 9 paise lower at 83.13 against the dollar. Earlier, the local currency had closed at the same level of 83.13 on August 21.
The domestic unit has declined 60 paise since Monday when it had closed 9 paise lower at 82.71 against the greenback. On Tuesday, the unit plunged 33 paise, the sharpest fall this week.
"We expect the rupee to trade with a negative bias on a strong dollar and elevated crude oil prices. Disappointing European data may further support the dollar. Rising US treasury yields and concerns over global economic growth may also weigh on the rupee," Anuj Choudhary - Research Analyst at Sharekhan by BNP Paribas, said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.09 per cent to 104.95.
Brent crude futures, the global oil benchmark, were trading 0.39 per cent lower at USD 90.25 per barrel.
Foreign Institutional Investors (FIIs) were net sellers in the capital market on Thursday as they offloaded shares worth Rs 758.55 crore, according to exchange data.
On the domestic equity market front, the BSE Sensex closed 385.04 points or 0.58 per cent higher at 66,265.56 points, while the broader Nifty jumped 116 points or 0.59 per cent to end at 19,727.05 points.

A minimum purchase of ₹ 1,000 should be made to exchange ₹ 2000 note in Bengaluru. Touts are charging ₹ 100 to exchange the notes

Rs 2,000 Note Exchange: Bengaluru traders, fuel outlets enforce minimum purchase rule 

A minimum purchase of ₹ 1,000 should be made to exchange ₹ 2,000 note in Bengaluru. Touts are charging ₹ 100 to exchange the notes

Some traders in Bengaluru are demanding a minimum purchase of ₹1,000 to make payments in ₹2000 notes. Meanwhile, touts are charging ₹100 to exchange the ₹2000 notes

Traders and fuel outlets in Bengaluru have enforced a minimum purchase rule to exchange ₹2000 note. They have put up posters that ask customers to make a minimum purchase of ₹1000 to exchange their ₹2000 note.&nbsp;
Komala Lakshminarasaiah, the owner of an IndianOil fuel outlet at Yeshwantpur on Tumakuru Road in Bengaluru told Moneycontrol that before the RBI's announcement, they would receive 20 to 30 pieces of ₹2000 note a day. However, now it has jumped to 150 to 180 notes.
Cashless transactions in the city has also increased now. Meanwhile, some traders have banned &nbsp;₹2000 note for transactions. It is also to be noted that Traders in Bengaluru do not accept ₹10 coins either.&nbsp;
Also Read: <a href="https://www.editorji.com/business-news/2000-note-exchange-banks-to-notify-big-deposits-to-it-department-1685083242625">₹2000 note exchange: Banks to notify big deposits to IT department</a>
Many shopkeepers refuse to take ₹2000 note in fear of the exchange burden. Most people prefer to exchange the notes in markets rather than waiting at bank queues.
Moneycontrol's investigation has also found out that Bengaluru is now swelling with touts to exchange the currency. &nbsp;₹100 is being charged for every ₹2000 note exchange. The commission is also reduced if large number of ₹2000 notes are being exchanged.
The RBI has given time till 30th September to deposit and exchange ₹2000 note in banks.

As per RBI, a deposit exceeding Rs 50,000 in a day would require PAN details. Exchange / deposit facility is available from 23rd May to 30th September 2023. 

Rs 2,000 Note withdrawal: after RBI's announcement here's what the banks are saying on exchange & deposit

As per RBI, a deposit exceeding Rs 50,000 in a day would require PAN details. Exchange / deposit facility is available from 23rd May to 30th September 2023.&nbsp;

The Reserve Bank of India on Friday had announced the withdrawal of Rs 2,000 note from circulation. The deposit It has given time till 30th September to deposit the currency in banks. RBI has also issued guidelines for the banks and has advised the banks to make necessary arrangements for the exchange.&nbsp;
The banks have also issued clarifications regarding the process for exchanging Rs 2,000 notes.
The public sector bank State Bank of India has said that the currency can be exchanged without obtaining any requisition slip. It has also said that no identity proof is required to exchange the notes. However, service charges may apply for deposits. SBI allows 3 deposits in a month in a regular savings account. Beyond this a service charge of 50+GST per deposit will apply.
Similarly, Punjab National Bank&nbsp;has also said that no Aadhar card or any other verified document would be needed to exchange the Rs 2,000 notes. After old circulars seeking additional information circulated online, the bank has clarified that there is no need for customers to fill any forms as part of the process.
Private lender HDFC bank has informed its customers that they can deposit any number of Rs 2,000 note in any branch till 30th September. The currency can be exchanged upto Rs 20,000 per day. The bank had also assured the customers that the note will still remain as a legal tendor in its mail. HDFC allows 4 free deposits and withdrawals per month beyond which Rs 150 will be applicable per transaction.
Meanwhile, ICICI bank has said that non-customers of the bank will have to provide ID proof to exchange the currency, reported India Today. As per the report, people with no account in ICICI bank will have to fill a form along with the ID proofs. This, as the bank has to submit the transaction details to the RBI. The bank gives 4 free deposit and withdrawal per month, beyond which Rs 150 will be applicable per transaction. In a month a customer can deposit upto one lakh. Beyond this Rs 5 will apply per Rs 1,000 or Rs 150, which ever is higher.
RBI has said that a deposit of more than Rs 50,000 will require Pan card details

Rupee strong against every currency:  Sitharaman in war-of-words with Congress MP

Rupee strong against every currency: Sitharaman in war-of-words with Congress MP

Sitharaman was responding to Congress MP Anumula Revanth Reddy's question

Finance Minister Nirmala Sitharaman today said that India's economy is fastest growing and that it was sad that some people in Parliament continued to raise doubts because they were "jealous of country&rsquo;s increasing economy&rdquo;.
In response to a question on currency devaluation and foreign exchange reserve, the FM also said the Indian rupee was strong against all currencies and the country's foreign reserves were growing.
Further, Sitharaman claims of state governments will be cleared once she gets relevant papers along with a certificate from their respective accountant generals.
She also said in Lok Sabha that the central government is committed to pay all Goods and Services Tax (GST) compensation to states and has been doing so continuously for the last five years.
The respective accountant general (AG) has to provide a certificate that the particular state has to get this much of compensation, the finance minister said.
"If there is a delay in the AG certified claim from states, obviously that (GST compensation) is pending. So, when the AG certificate along with the state's claim comes, at that moment the money will also get released," she said during the Question Hour.
From the central government's side, it is up to date, and whatever money it gets as cess, is distributed among states, Sitharaman said.
"We are up to date on all claims that came from states, which were approved by the respective AG. We have paid all," she said.
Sitharaman said if the AG has not cleared the claims of states, the state governments should expedite that."The moment I get it, I will clear that," she said.
Many state governments believe that their GST compensation is pending, and these are pending as the central government needs the necessary papers as the money belongs to the taxpayers, Sitharaman said.
"The moment I receive the papers, the AG certification, even if there is a contention between the Centre and a state, it has to be sorted out. I cannot be sitting on somebody's money," she said.
Sitharaman said differences with states can be sorted out when officials of the central and state governments sit together.
The minister said half of the GST compensation for June has already been cleared while the rest would be given once adequate cess is collected.

The Reserve bank of India (RBI) 
What is e-rupee (digital rupee)?E-rupee or digital rupee is a digital version of the Indian rupee that the RBI is exploring. The RBI has proposed to issue two versions - wholesale for interbank settlement and retail for the public. According to the indirect model proposed by the RBI, you will hold the digital rupee in a wallet with a bank or service provider.

While the digital rupee is identical to banknotes, it will be tailored for speedier and less expensive settlements.
As India already has a robust digital payment infrastructure like UPI, digital wallets like Paytm, Gpay, etc. the upcoming digital payment system must be compatible and interoperable with them.
 


What is RBI's e-Rupee? 10 things you need to know about e-rupee RBI

What is RBI's e-Rupee? 10 things you need to know about it

In the 2022 Union budget, finance Minister Nirmala Sitharaman has announced the launch of e-rupee

RBI e-Rupee : While most countries are currently exploring the idea of central bank owned digital currency for their nation, India is also working towards introducing what is known as 'digital rupee'.&nbsp;
The Reserve Bank of India (RBI) said this in a concept note on central bank digital currency (CBDC) aimed to create awareness about such currencies in general and the planned features of the <a href="https://www.editorji.com/business-news/budget/budget-2022-what-is-digital-rupee-that-rbi-will-introduce-all-you-need-to-know-1643728554988">Digital Rupee</a>, in particular, according to a release. India's CBDC will be called 'e-rupee'.
<h3>EJbiz points key highlights of the RBI's concept note on digital currency:</h3>
1. E-rupee or digital rupee is a digital version of the Indian rupee that the RBI is exploring. The RBI has proposed to issue two versions - wholesale for interbank settlement and retail for the public. According to the indirect model proposed by the RBI, you will hold the digital rupee in a wallet with a bank or service provider.
2. The digital currency must be accepted as a medium of payment, legal tender and a safe store of value by all citizens, enterprises and government agencies.
3. A large-scale pilot will be conducted, with users from different income levels, literacy levels, regions, genders and age groups. The Digital Rupee will be designed in a manner that's least disruptive to existing financial system.&nbsp;
4. While the digital rupee is identical to banknotes, it will be tailored for speedier and less expensive settlements.
5. Noting that out of 143.3 crore population, only 82.5 crore people have internet access, for financial inclusion it is necessary that the <a href="https://www.editorji.com/business-news/rbi-launches-upi123pay-a-digital-payment-method-without-internet-1646742141840">digital payment</a> support offline capability.
6. The wallets must be capable of independently verifying the validity of any CBDC transaction without interacting with the server during the transactions.
7. Unlike cryptocurrencies, which are private in nature, RBI&rsquo;s Central Bank Digital Currency (CBDC) will be issued and controlled by the central bank itself.
8. As India already has a robust digital payment infrastructure like UPI, digital wallets like Paytm, Gpay, etc. the upcoming digital payment system must be compatible and interoperable with them.
9. The goal of the digital rupee is to mimic the characteristics of money. But unlike bank deposits, it wouldn&rsquo;t pay interest.
10. Citing concerns of security, the RBI concept note states that central bank digital currency ecosystems may be at a similar risk of cyber-attacks that the current payment systems are exposed to. "The cybersecurity considerations need to be taken care of both for the item and the environment.
<a href="https://www.editorji.com/business-news/budget/budget-2022-what-is-digital-rupee-that-rbi-will-introduce-all-you-need-to-know-1643728554988">What is digital rupee that RBI will introduce? All you need to know</a> &nbsp;

Nine banks — State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC — have been identified for participation in the pilot

RBI to kickstart e-rupee pilot today

Nine banks &mdash; State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC &mdash; have been identified for participation in the pilot

The Reserve Bank of India announced that it will launch its digital rupee on November 1 as a pilot project for transactions in the wholesale market. The digital rupee will be used to settle inter-bank transactions of bonds issued by the government, the RBI said in a statement.
The digital currency is equivalent to the banknote but will be issued in electronic form.
Nine banks &mdash; State Bank of India, Bank of Baroda, Union Bank of India, HDFC Bank, ICICI Bank, Kotak Mahindra Bank, Yes Bank, IDFC First Bank and HSBC &mdash; have been identified for participation in the pilot, the RBI said.
It also said that a pilot of the digital rupee for the retail market would be launched within a month in among a closed group of customers and merchants.

India reported an average monthly trade deficit of $23.2 billion for the first nine months of this year, compared to an average of $15.3 billion in 2021

Rupee to drop further to 84.50 against dollar by year?

The Indian rupee will fall further against the U.S. dollar over the rest of the year, a Reuters poll showed

India reported an average monthly trade deficit of $23.2 billion for the first nine months of this year, compared to an average of $15.3 billion in 2021

The Indian rupee will fall further against the U.S. dollar over the rest of the year, a Reuters poll showed, setting up the currency for its steepest annual decline in at least nine years due to a widening domestic trade balance and surging U.S. interest rates.
The rupee slipped to a record low of 83.2 on Thursday. It is likely to fall further to 84.50 by December, according to the mean and median forecasts of a poll of 14 bankers and foreign exchange advisors.
The South Asian currency has already tumbled about 12% so far this year, equalling its drop over the whole of 2013, when the U.S. Federal Reserve&rsquo;s decision to slow bond purchases prompted a broad selloff in emerging market currencies.
The Fed's hikes have led to a near 18% jump in the dollar index this year and has prompted investor to pull out capital from emerging market assets.&nbsp;

The rupee depreciated 44 paise and slipped below the 81-mark against the US dollar for the first time in early trade on Friday, weighed down by the strong american currency and risk-off sentiment among investors.
Forex traders said escalation of geopolitical risk in Ukraine and rate hikes by the US Fed and Bank of England in a bid to contain inflation sapped risk appetite.
Further, the strength of the American currency in the overseas market, a negative trend in domestic equities, and risk-off moods amid escalation of geopolitical risk in Ukraine weighed on the local unit.
At the interbank foreign exchange, the rupee opened at 81.08 against the greenback, then fell further to 81.23, registering a fall of 44 paise over its previous closing.

 Rupee falls 81-mark against US dollar for first time

Forex traders said escalation of geopolitical risk in Ukraine and rate hikes by the US Fed and Bank of England in a bid to contain inflation sapped risk appetite

The rupee depreciated 44 paise and slipped below the 81-mark against the US dollar for the first time in early trade on Friday, weighed down by the strong american currency and risk-off sentiment among investors.
Forex traders said escalation of geopolitical risk in Ukraine and rate hikes by the US Fed and Bank of England in a bid to contain inflation sapped risk appetite.
Further, the strength of the American currency in the overseas market, a negative trend in domestic equities, and risk-off moods amid escalation of geopolitical risk in Ukraine weighed on the local unit.
At the interbank foreign exchange, the rupee opened at 81.08 against the greenback, then fell further to 81.23, registering a fall of 44 paise over its previous closing.

Rupee hits new record low as dollar hits 20-year high

Rupee hits new record low as dollar climbs 20-year high

Rupee falls 51 paisa to an all-time low of 80.47 against the US dollar as the U.S. Federal Reserve hinted at more aggressive rate hikes to tame inflation

Global oil benchmark Brent crude futures rose 0.49 per cent to USD 90.27 per barrel

Rupee falls 51 paisa to an all-time low of 80.47 against the US dollar as the U.S. Federal Reserve hinted at more aggressive rate hikes to tame inflation.
Forex traders said the strength of the American currency in the overseas market, a muted trend in domestic equities, risk-off moods and firm crude oil prices weighed on the local unit.
According to Bloomberg, while the Fed hiked the rates by 75 basis points, more importantly, it hinted that more hikes were coming and that rates would stay elevated until 2024. As a result, Asian currencies opened weaker, with the Chinese yuan slipping below 7.10 to the dollar.
Meanwhile, the US dollar climbed up sharply to a new 20-year peak on the day as the rate hike spooked investors and advanced 0.88 per cent to 111.61.
Sentiment took an additional hit from Russia's escalation of its war with Ukraine and tensions between Beijing and Taiwan.

Rupee at 80 may be the headline but the star of the story is Dollar as the script and casting for the rout is not homegrown. Simply speaking, it is Dollar which is king and rupee an unfortunate victim of the turn of events -geo political and economic

Explained: Rupee at 80, what got it here and what it means for you 

The dollar continues to gain vs emerging market currencies

<a href="https://www.editorji.com/business-news/markets/rupee-at-80-set-to-hit-historic-low-today-vs-usd-1657852856569" target="_blank">Rupee at 80</a> may be the headline but the star of the story is Dollar as the script and casting for the rout is not homegrown. Simply speaking, it is Dollar which is king and rupee an unfortunate victim of the turn of events - geo political and economic.&nbsp;
<h3>Tracking the tumble</h3>
From an average rate of 73.93/$ in 2021 rupee has tumbled over 27 times to hit new record low in this year itself, tumbling over 6.5%. To paint a true picture it is not the rupee falling but the dollar rising. The dollar has risen to a 20 year high vs a basket of currency adding pressure across the globe. Euro has hit parity vs the dollar, something unseen in 20 years. The Japanese Yen continues to struggle at 24 year low as well.&nbsp;
<h3>Why is the Rupee hit so hard?</h3>
India's large amount of dues in dollars because of large import bill leaves the fifth biggest economy in the world more exposed to pressure as the dollar gains and it has to shell out far more currency to make pay debt. As the world&rsquo;s third largest oil importer, India is vulnerable to rising oil prices and in turn the rising demand for dollars to make those payments.&nbsp;
<h3>Dollar payments pile up</h3>
Its not just the household budgets that have been hit with high prices, it is playing havoc with North Blocks balance sheet as well. India&rsquo;s trade deficit, the gap between imports and exports&nbsp; - widened the most on record in June to $25.63 billion adding more pressure to the rupee as demand for dollars to make those payments rises.&nbsp;
<h3>Don't we have reserves, what is the RBI doing?</h3>
RBI's forex reserves have fallen by $42 billion dollars since Februrary and is now at&nbsp; the lowest in more than 14 months at $588.3 billion as of July 1. The central bank has intervened directly into the forex markets as well via tools such as restricting gold imports, allowing settlement in rupee for external trade. But this is a global rout so intervention and course correction may be a tough ask for Governor Shaktikanta Das.&nbsp; 
<h3>Who to blame - Putin or Powell?</h3>
Oil has what has boiled India's import bill with Russia's invasion of Ukraine creating global fuel shortages. In fact for every $1 increase in the price of oil, India&rsquo;s import bill increases by $2.1 billion. Putin to petrol to payments that has really been the domino effect. Another side effect and a bigger one has been from Jerome Powell, historic hikes from the US Central bank has made dollar denominated investments more attractive, and as globally economies slow risk aversion rises and FIIs start to park money to safer slower investments mostly dollar based.&nbsp;
<h3>What is the endgame?&nbsp;</h3>
With global central banks playing catch up on rates with Powel being the pied piper, traders expect dollar to gain more from here so emerging market currencies such as the rupee are likely to see more pain.&nbsp;

The rate on the USD INR is giving investors heart ache as the rupee slid to yet another record low vs the dollar. Bets are now rising for the rupee to slide all the way to Rs 80/$. But it is not the rupee weakness but the dollar dominance that is in the spotlight which now has the Euro nearing parity with dollar and the pound hitting two-year low. So what does this mean for your portfolio, Editorji spoke with Nasser Salim, Managing Partner at Flexi Capital who sees more near term pain as the greenback is expected to gain further. Nasser Salim, Managing Partner Flexi CapitalThese are very peculiar times as far as the capital markets, the fixed income markets, the currency markets are concerned. We personally feel that there is some more, trouble as expected because, you know, it's all linked basically to interest rates which are globally moving higher.
However, we are also of the opinion that this is in the near term inching towards its its peak. We think in the US interest rates are going to start peaking over the next 3-6 months. And therefore the dollar will not appreciate more beyond maybe, or plus minus 1 -1.5% from here on.
 
 

Rupee at record low: USD dominance continues, dollar gains vs Euro : Nasser Salim, Flexi Capital

Rupee at record low: What it means for your portfolio, Flexi Capital explains

Rupee at record low: Flexi Capital explains what to expect next

Indian rupee hit new record low today as investors continue to favour dollar as &lsquo;safe haven&rsquo;

The rate on the USD INR is giving investors heart ache as the rupee slid to yet another record low vs the dollar. Bets are now rising for the rupee to slide all the way to Rs 80/$. But it is not the rupee weakness but the dollar dominance that is in the spotlight which now has the Euro nearing parity with dollar and the pound hitting two-year low.
Also read/watch| <a title="Rupee at record low: Flexi Capital explains what to expect next" href="https://www.editorji.com/business-news/rupee-at-record-low-flexi-capital-explains-what-to-expect-next-1657629436792">Rupee at record low: Flexi Capital explains what to expect next</a>
So what does this mean for your portfolio, Editorji spoke with Nasser Salim, Managing Partner at Flexi Capital who sees more near term pain as the greenback is expected to gain further.&nbsp;
<h3>Nasser Salim, Managing Partner Flexi Capital</h3>
These are very peculiar times as far as the capital markets, the fixed income markets, the currency markets are concerned. We personally feel that there is some more, trouble as expected because, you know, it's all linked basically to interest rates which are globally moving higher.
However, we are also of the opinion that this is in the near term inching towards its peak. We think in the US interest rates are going to start peaking over the next 3-6 months. And therefore the dollar will not appreciate more beyond maybe, or plus-minus 1 -1.5% from here on.

The rupee rout continues as the currency is set to decisively fall below the crucial 80 per US dollar mark in trade. The rupee on Wednesday briefly breached the 80 mark but settle to close at recor low - 4th session in a row at 79.90/$. It is not the rupee that is suffering but rather the US greenback that is gaining. The dollar dominance has been exaggerated by fast rising rates by the US Fed and the global slowdown. The result a general risk aversion and foriegn investors pulling money out of 'hot spot' markets such as India. In just this year FIIs have pulled out over $29 billion dollars from the markets, outstripping the exits during the 2008 financial crisis. But India is not alone in the losers club vs the dollar, Euro now at parity sits at a 20 year low, the Japanese yen has tumbled to its lowest level in 24 years vs the dollar. The bets however expect a little more pain as the Fed is set to tighten rates by a historic 100 bps at its July 26-27 meet pushing the dollar even higher. 

Rupee at 80, set to hit historic low today vs USD 

After 27 record lows from February, the Rupee now at the doorstep of 80/$. 

Rupee set to breach 80 vs USD today

Dollar dominance is pushing currencies from Euro, Yen to Peso to multi-year lows

The rupee rout continues as the currency is set to decisively fall below the crucial 80 per US dollar mark in trade. The rupee on Wednesday briefly breached the 80 mark but settle to close at recor low - 4th session in a row at 79.90/$.&nbsp; It is not the rupee that is suffering but rather the US greenback that is gaining. The dollar dominance has been exaggerated by fast rising rates by the US Fed and the global slowdown. The result a general risk aversion and foriegn investors pulling money out of 'hot spot' markets such as India.&nbsp; In just this year FIIs have pulled out over $29 billion dollars from the markets, outstripping the exits during the 2008 financial crisis. But India is not alone in the losers club vs the dollar, Euro now at parity sits at a 20 year low, the Japanese yen has tumbled to its lowest level in 24 years vs the dollar.&nbsp; The bets however expect a little more pain as the Fed is set to tighten rates by a historic 100 bps at its July 26-27 meet pushing the dollar even higher.&nbsp;

As the Indian Rupee hit an all-time low of 77.53 against the U.S. Dollar, editorji talks to Flexi Capital to understand the sectors that are going to take a jolt and the others that will actually be benefitted.
We also discussed what has led to the fall in the domestic currency and how actually it is placed in comparison to other emerging market currencies.
What has China or Russia or Ukraine has to do? 
Even as the equity markets have been taking a toll due to the rising inflation worries, how must one place his/her portfolio?

Rupee & Your Portfolio: How to bet at these odd times, Flexi Capital explains

What has led to the fall in Indian Rupee and how actually it is placed in comparison to other emerging market currencies?

EJ Money Matters Ep 03

Does the falling equity markets seem like an opportunity to buy good quality stocks?

As the Indian Rupee hit an all-time low of 77.53 against the U.S. Dollar, editorji&nbsp;talks to Flexi&nbsp;Capital to&nbsp;understand the sectors that are going to take a jolt and the others that will actually be benefitted.
We also discussed what has led to the fall in the domestic currency and how actually it is placed in comparison to other emerging market currencies.
What has China or Russia or Ukraine has to do?&nbsp;
Even as the equity markets have been taking a toll due to the rising inflation worries, how must one place his/her portfolio?

It is risk off for the market and the Rupee is feeling the brunt of it along with equities. The domestic currency fell to a record low of Rs 77.13 per US dollar in Monday's trade as equity outflows continue. Foreign investors have now pulled out funds for 7 straight months from the Indian markets. March saw an outflow of $5.4 billion, the worst since the pandemic began. Thought domestic funds have chipped in the selling pressure is evident on the benchmark index. Nifty is down 10% from October peak, while smallcaps are down 20%. Foreign funds' ownership in domestic equities fell to pre-COVID lows and hit a multi-year low of 19.5 per cent in March this year in NSE500 companies valued at $ 619 billion, shows an analysis.
At 19.5 per cent the FPI ownership in March 2022, is the lowest in the past three years, when it was 19.3 per cent in March in 2019, which was a pre-COVID period.

Rupee at record low, Markets sink further: FIIs flee Indian markets for 7 straight months

It is risk off for the market and the Rupee is feeling the brunt of it along with equities. The domestic currency fell to a record low of Rs 77.13 per US dollar in Monday's trade as equity outflows continue. 

Rupee at record low, Markets sink further

April marks seventh straight month of FII&nbsp;outflows for India

It is risk off for the market and the Rupee is feeling the brunt of it along with equities. The domestic currency fell to a record low of Rs 77.13 per US dollar in Monday's trade as equity outflows continue. 50 stock benchmark Nifty is at the lowest level since March 9.&nbsp; Foreign investors have now pulled out funds for 7 straight months from the Indian markets. March saw an outflow of $5.4 billion, the worst since the pandemic began. Though domestic funds have chipped in the selling pressure is evident on the benchmark index. Nifty is down 10% from October peak, while smallcaps are down 20%.&nbsp; Foreign funds' ownership in domestic equities fell to pre-COVID lows and hit a multi-year low of 19.5 per cent in March this year in NSE500 companies valued at $&nbsp;619 billion, shows an analysis.
At 19.5 per cent the FPI ownership in March 2022, is the lowest in the past three years, when it was 19.3 per cent in March in 2019, which was a pre-COVID period.

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