Connect with us

Business

Dollar depreciation, RBI intervention leads to slower forex growth

Published

on

rbi-logo

Mumbai: Depreciation in dollar value and intervention by the country’s apex bank to arrest the slide in rupee value led to a slower growth in India’s foreign exchange reserves in the week just ended.

According to the data furnished by the Reserve Bank of India (RBI) in its weekly statistical supplement, India’s total foreign exchange reserves grew by $262.4 million to touch a new record high of $352.13 billion for the week ended May 8, 2015.

For the week ended May 1, the reserves had rocketed by $7.26 billion and touched a new record high of $351.86 billion. The week before that the reserves had reached $344.6 billion, when it grew by $1.4 billion.

Foreign exchange reserves have increased by close to $25 billion since January as overseas investors buoyed by the hope of economic revival poured in dollars in the local debt and equities market.

“Though the reserves have grown and touched a new high, the rate of increase has slowed due to a combination of factors like depreciation in the dollar value and the intervention by the Reserve Bank of India (RBI) to stop the fall in the rupee value,” Anindya Banerjee, senior manager for currency derivatives with Kotak Securities told.

Since the last two weeks RBI has been interviening in the forward trading market by selling dollar to arrest the fall in the rupee value. The rupee value was impacted by the significant pull-back of foreign funds due to the minimum alternate tax (MAT) issue.

Some estimates point-out that the RBI may have sold nearly $5-6 billion in the forward trading market to arrest the slide in the rupee value which currently stood at Rs.63.43 per dollar.

According to Banerjee, the other reasons for the slowing growth of reserves was the fact that exports to the commodity driven economies were negatively impacted.

“Exports to economies which are dependent on the sale of raw commodities or crude oil have been impacted by the low prices of their exports. This has led to a slow-down in our exports to these markets,” Banerjee said.

The RBI continues to build-up the reserves to counter any future financial shocks and further slide in rupee value like the one which was witnessed in June 2013.

“Apart from dealing with any future financial shocks like the one which was earlier triggered by the US Fed’s announcement of tapering, the healthy state of reserves has acted as a support to the Indian rupee’s value,” Banerjee added.

The RBI is cautious about the US Fed’s stand that the rate hike might take place in the later part of the year.

With higher interest rates in the US, the foreign portfolio investors (FPIs) are expected to be led away from the emerging markets such as India.

The US Fed had earlier dropped an assurance to be “patient” in raising interest rates and signalled the hike could come by mid to late this year.

Meanwhile, the foreign currency assets (FCAs) which forms the largest component of the forex reserves grew by $262.7 billion and stood at $327.41 billion in the week under review.

The country’s gold reserves remained stagnant at $19.33 billion. The reserves had augmented by $297.7 million during the week ended May 1.

However, the special drawing rights (SDRs) were marginally down by $0.2 million to $4.06 billion.

The country’s reserve position with the International Monetary Fund (IMF) slipped by 0.1 million.

Business

Apple is giving a huge discount on its gadgets: Details inside

Published

on

If you want to buy an iPhone and were waiting for a nice offer, then we have a piece of good news for you! Amazon Summer Sale May 2022 has begun and they are offering major discounts on various smartphones, laptops, and smart TVs, among others.

The sale is live now on the e-commerce platform with no-cost EMI options and exchange discounts on various products. In addition to this, Amazon has also partnered with several banks including ICICI, Kotak Bank, and RBL so that customers get instant discounts of up to 10% using their cards and EMI transactions.

Customers can easily enjoy this summer sale and get massive discounts on iPhones. They can also compare prices on Flipkart Big Saving Days Sale 2022 before making a purchase.

 

Amazon Summer Sale May 2022: Discount offer on iPhone 13 

Apple’s coveted phone model iPhone 13 in the 128 GB storage model will be available during the Amazon Summer Sale May 2022 for Rs 64,900. The MRP of the phone is Rs 79,900. This means that the customers will be able to enjoy a discount of up to Rs 15,000 on the purchase of the iPhone 13.

If you have an old iPhone in working condition then you will also be eligible to receive another additional discount worth up to Rs 17,000 on the iPhone 13.

Buy at Rs. 64,900 (MRP – Rs. 79,900)

Features of Apple iPhone 13 

The iPhone is powered by an A15 Bionic processor with 6 core CPU. Apart from this, it has 16 core neural engines. With the iPhone 13, up to 512 GB of storage will be available. The iPhone 13 has a 6.1-inch Retina XDR display with 1000 nits brightness.

The iPhone 13 has a 12-megapixel dual rear camera setup. This time a new wide-angle camera has been given, whose aperture is f/1.6. With this, there is support for sensor optical stabilisation. Night mode has been made better than before. The second lens is also 12 megapixels ultra-wide and has an aperture of f/2.4.

Continue Reading

Trending