Online Trading India

Mutual Funds

Share Market
Credit Card

How Are Farm Loan Waivers Affecting the Value of ‘Rupee’ In Global Market

The rupee opened 11 paise down at 64.35 against dollar on account of fresh demand for the US currency from importers and banks amid cautious global sentiment.

Meanwhile, domestic equity markets opened in red ahead of the announcement of inflation and industrial production data later in the day. The 30-share BSE Sensex opened 36.63 points, or 0.12 per cent, down at 31,225.43, while NSE Nifty index opened 21.55 points, or 0.22 per cent, down at 9,646.70.

Foreign portfolio investors turned net sellers in domestic equity markets on Friday as they withdrew Rs 100 crore on net basis from stocks, as per provisional exchange data.

Last week, USDINR spot appreciated by 0.25 per cent as markets discounted the release of RBI Monetary Policy Statement where the key interest rates were kept unchanged and the forecast for inflation in the coming months were also reduced.

Reason behind this unchanged move could be attributed to spurt in farm loan waivers by states which have the possibility to hurt inflation along with the increased lending capacity of banks to support economic growth.

Government bond yields fell last week, with the benchmark yield posting its biggest weekly fall in nine weeks, as investors eyed a near-term rate cut after RBI’s Monetary Policy Committee lowered inflation projection for the year.

(Visited 19 times, 1 visits today)
Share This!
Show Buttons
Hide Buttons