Forex markets are closed on Thursday on account of ‘Muharram’, reported . On Wednesday, the Indian rupee rose sharply against the US dollar to close at 72.37, breaking its two-day fall.
That marked the best single-day gain since March 2017. Heavy dollar selling by exporters along with state-run banks likely on the behalf of the RBI (Reserve Bank of India), boosted the rupee sentiment, restricting the local unit from breaching the 73 level. Forex markets will now resume trading on Friday.
Key things to know:
1. The benchmark 10-year bond yield ended Wednesday at 8.07 per cent versus its previous close of 8.14 per cent.
2. According to a report, the rupee is Asia’s worst performing currency this year. The rupee has depreciated more than 11 per cent this year.
3. The government proposed a hike in effective import duty on some steel products, as part of its plan to cut ‘non-necessary’ imports to defend the rupee, reported.
4. Government is considering asking RBI to offer dollars directly to oil marketing companies or through a state-run bank, as part of steps to stem a fall in the rupee.
5. The RBI has also liberalised some aspects of the external commercial borrowings (ECBs) policy including those related to rupee-denominated bonds to help check rupee depreciation.
6. As an ‘extreme’ measure, the government could also look at raising dollars by tapping expatriates to invest in bonds for non-resident Indians, added.
7. Last Friday, after the Prime Minister held the economic review meeting. Finance Minister Arun Jaitley announced government’s five measures and also a broad policy decision to curb non-essential imports and increase exports. However, the latest steps of government were particularly underwhelming for market participants.
8. Market regulator Sebi (Securities and Exchange Board of India) has recently announced revised KYC (Know Your Customer) norms for foreign investors, reduction in the listing time after a public offer to three days, and lower charges levied by mutual funds from investors. Overseas entities have been permitted to trade in commodity derivatives subject to certain conditions.>