By -
Aug 7, 2014
India’s rupee rose from the lowest
level in almost five months after the government approved higher
overseas investment in the railway and defense industries.
The cabinet approved raising the foreign direct investment cap in defense to 49 percent late yesterday and will allow greater investment in the railway infrastructure, an India government official said in New Delhi, asking not to be named because of a restriction on speaking to the media. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, dropped 0.2 percent yesterday, the steepest loss in more than a month.
“The cabinet decisions on allowing higher FDI are positive for the rupee,” said Gaurav Sharma, a senior currency analyst at Religare Commodities Ltd. in Noida, outside New Delhi. “The dollar’s weakness also contributed to the rupee’s strength.”
India’s currency gained 0.3 percent to 61.3275 per dollar as of 9:30 a.m. in Mumbai, prices from local banks compiled by Bloomberg show. It fell 1.1 percent yesterday to close at 61.5050 and reached 61.5350, the lowest level since March 14.
One-month implied volatility, a gauge of expected moves in the exchange rate used to price options, climbed 29 basis points, or 0.29 percentage point, to 7.51 percent.
Three-month offshore non-deliverable forwards rose 0.4 percent to 62.29 per dollar, according to data compiled by Bloomberg. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.
To contact the reporter on this story: Kartik Goyal in Mumbai at kgoyal@bloomberg.net
To contact the editors responsible for this story: Amit Prakash at aprakash1@bloomberg.net Simon Harvey, Andrew Janes
The cabinet approved raising the foreign direct investment cap in defense to 49 percent late yesterday and will allow greater investment in the railway infrastructure, an India government official said in New Delhi, asking not to be named because of a restriction on speaking to the media. The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, dropped 0.2 percent yesterday, the steepest loss in more than a month.
“The cabinet decisions on allowing higher FDI are positive for the rupee,” said Gaurav Sharma, a senior currency analyst at Religare Commodities Ltd. in Noida, outside New Delhi. “The dollar’s weakness also contributed to the rupee’s strength.”
India’s currency gained 0.3 percent to 61.3275 per dollar as of 9:30 a.m. in Mumbai, prices from local banks compiled by Bloomberg show. It fell 1.1 percent yesterday to close at 61.5050 and reached 61.5350, the lowest level since March 14.
One-month implied volatility, a gauge of expected moves in the exchange rate used to price options, climbed 29 basis points, or 0.29 percentage point, to 7.51 percent.
Three-month offshore non-deliverable forwards rose 0.4 percent to 62.29 per dollar, according to data compiled by Bloomberg. Forwards are agreements to buy or sell assets at a set price and date. Non-deliverable contracts are settled in dollars.
To contact the reporter on this story: Kartik Goyal in Mumbai at kgoyal@bloomberg.net
To contact the editors responsible for this story: Amit Prakash at aprakash1@bloomberg.net Simon Harvey, Andrew Janes
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