Foreign Exchange | Business Upturn

Goyal emphasizes possibilities for women to find employment and sees India as a maker of high-quality footwear

Avinash Ram — Sun, 30 Jul 2023 04:11:22 +0000

The Indian footwear and leather industry was given a lot of attention by Commerce and Industry Minister Piyush Goyal, who emphasized its importance as a substantial source of foreign exchange. He emphasized the industry’s labor-intensive nature during the India International Footwear Fair 2023 (IIFF), which was hosted in New Delhi, pointing out that it creates employment prospects for almost 4.5 million people, 40% of whom are women. Goyal expressed the utmost faith in India’s ability to become the world leader in the production of premium footwear. India is the second-largest exporter of leather clothing, third-largest exporter of saddlery & harnesses, and fourth-largest exporter of leather items in the world, he noted, drawing attention to India’s remarkable rankings.

The minister also emphasized the significant fact that the Ministry of Micro, Small & Medium Enterprises (MSME) is in charge of overseeing over 95% of the production facilities in this sector.

According to Goyal, Indian shoe sizes will soon be introduced in order to distinguish Indian footwear internationally and lessen reliance on foreign sizing trends. As part of India’s growth plans for leather and footwear, the minister said that testing facilities will be developed by the government. Goyal urged the parties involved to grow the company while maintaining a commitment to environmental responsibility, eco-friendly operations, waste management, and the investigation of renewable energy sources.

According to him, organizations like CLRI, FDDI, and NIFT will work with the market to produce new goods and technologies that are in line with the shifting trends and demands of the market.

CoinSwitch speaks out on ED’s recent nab against top crypto sites

Dipankar Ray — Wed, 06 Jul 2022 11:54:05 +0000

The Enforcement Directorate (ED) has sent notices to major cryptocurrency exchange firms such as CoinDCX and CoinSwitch. Summons have been sent to both these agencies and officials have been called up for investigation. These firms have been under the radar of ED for quite some time in connection to violations. Which were made under the Foreign Exchange Management Act (FEMA). The case has been registered with the Bangalore office of the ED. Sumit Gupta, the creator of CoinDCX, has previously been questioned at the ED headquarters in Bengaluru. After being called, he had his comments videotaped.

“We receive queries from various government agencies. Our approach has always been that of transparency. Crypto is an early-stage industry with a lot of potentials and we continuously engage with all stakeholders”. A CoinSwitch spokesperson said.

The transactions carried out by these two companies over the preceding three years will be examined, and their Chartered Accountants (CA) will also be questioned, according to ED sources. The ED had previously requested information from the cryptocurrency exchange WazirX in June 2017 for suspected violations of the Foreign Exchange Management Act involving bitcoin transactions of Rs 2,790.74 crore.

India likely to halt listing of domestic firms overseas: Report

Sathvika Chelakani — Wed, 23 Mar 2022 14:26:27 +0000

According to a report by Reuters, India has halted plans to allow local firms to list overseas as it seeks to strengthen its capital markets, dealing a blow to foreign funds and stock exchanges looking to capitalize on the country’s tech boom.

Three senior government officials with direct knowledge of the decision told Reuters that the plan had been put on hold because India believes there is enough depth in local capital markets for firms to raise funds and get good valuations. They declined to be identified because the move had not been made public.

Indian equity markets have flourished as enthusiastic retail investors and a pandemic-induced overflow of easy money drove prices to all-time highs, encouraging a slew of Indian tech founders to go public in India (IPOs).

In 2021, more than 60 companies made their market debut in India, raising more than $13.7 billion, which was more than the past three years combined. Russia’s invasion of Ukraine has roiled Indian stocks, as it has other global markets, and the volatility has caused IPOs to be postponed.

However, the outlook for such listings has dimmed after Paytm, a digital payments app backed by China’s Alibaba and Ant and Japan’s Softbank, plunged on its debut in November, stoking fears about valuations. Its stock has dropped by 75% since its IPO.

Even before Paytm’s demise, US venture capitalists such as Tiger Global and Sequoia Capital lobbied Prime Minister Narendra Modi to allow Indian firms to list abroad in order to achieve higher valuations, according to Reuters.
A second government official stated that the overseas listing rules were now in “limbo,” and both officials cited the stock market debut of food-delivery giant Zomato, which clocked a high valuation, as attributing to the change of heart.

Zomato went public on the Mumbai stock exchange in July, and its offer was 38 times oversubscribed, resulting in a 66 percent increase in its stock price. And Nykaa, an Indian cosmetics-to-fashion platform, soared 96 percent on its initial public offering, reaching a valuation of nearly $14 billion. Both have given up a significant portion of their gains in recent months.

Two industry sources briefed by government officials also said the plan had been put on hold, a setback for exchanges in New York and London that had been vying for a piece of India’s rapidly growing start-up economy.

India’s foreign exchange reserves plunged $4.531 billion to 629.755 billion in January: RBI

Himanshu Mishra — Fri, 04 Feb 2022 16:05:44 +0000

The country’s foreign exchange reserves plunged by USD 4.531 billion to stand at USD 629.755 billion in the last week ended January 28, RBI data revealed on Friday. Earlier, in the week ended on January 21, the reserves had fallen by USD 678 million to USD 634.287 billion. It reached a lifetime high of USD 642.453 billion in the week ended September 3, 2021.

During the last week, the decline in the reserves was because of a plunge in the foreign currency assets (FCAs), a major element of the overall reserves, and gold reserves. However, as per weekly data by the Reserve Bank of India (RBI), FCAs fell by USD 3.504 billion to USD 566.077 billion.

Indicated in dollars, the foreign currency assets comprise the impact of appreciation or depreciation of non-US units like the euro, pound and yen carried in the foreign exchange reserves. Gold reserves dropped by USD 844 million to USD 39.493 billion in the last week.

Additionally, the report also stated that special drawing rights (SDRs) with the International Monetary Fund (IMF) also decreased by USD 141 million to reach USD 19.011 billion. The country’s reserve position with the IMF too plunged by USD 42 million to USD 5.174 billion.

Rupee drops by 13 Paise to 75.16 against USD

Malvika Choudhary — Mon, 27 Dec 2021 08:42:15 +0000

At the interbank foreign exchange, the rupee declined by 13 Paise to 75.16 against the US dollar in opening trade on Monday, as dampened domestic equities and persistent foreign fund outflows weighed on the local unit.

Forex traders held the growing concerns over the Omicron variant responsible for adverse impact on economic recovery as well as the firm crude oil prices that weighed down on the local unit.

India’s real GDP growth came in at 8.4% YoY in FYQ2 2021 (from 20.1% YoY in FYQ1 2021). Domestic equity markets declined for the month due to the unprecedented situation of the COVID-19, toeing commentary by the US Federal Reserve, FPI outflows and profit-booking by investors with equities trading at life high.

The market capitalisation declined which covered the large-cap and mid-cap. Among the sectors, Banks and Automobiles declined the most while Healthcare and IT gained for the month. Daily new cases continued to fall gradually and stood below 8000. The recovery rate stood above 98%. The total number of vaccines administered was around 1.3 billion.

Earlier on September 24, 2021, the rupee opened on a weak note and fell to 73.77 against the dollar, registering a decline of 13 Paise from the last close, even as the domestic equity market was trading with handsome gains.

Developed market equities tanked for the month by around 2%, on the other hand, emerging market equities declined by almost 4% for the same period. The news in November was inhabited by the resurgence of COVID-19 and the potential effect of the new variant. Gold and base metal prices declined marginally.

Indian rupee raises 13 paise to 74.11 against the US dollar

Shivya Kumar — Thu, 26 Aug 2021 07:24:08 +0000

A surge in the price of the Indian rupee against the US dollar. According to reports, the Indian rupee raises from 13 paise to 74.11 against the US dollar in opening trade on Thursday.

As per the foreign exchange, the Indian rupee conjectured with 74.22 against the dollar but rose higher to 74.11 which is an increment by 13 paise in comparison to its previous close. On Wednesday the rupee was estimated to be 74.24 against the US dollar.

While on the other hand, Global oil net profits fell by 0.48 per cent USD 71.90 per barrel. Further Greenback’s gauged a rise of six currencies by 0.06 per cent at 92.87. dollar index.

Meanwhile, in the domestic equity market, BSE Sensex was boasting up with 116.17 points or 0.21 per cent at 56,060.38 and NSE Nifty raised to 38.50 points or 0.23 per cent to 16,673.15.

As per the exchange data, foreign investors did not seem in the capital market on Wednesday as they dumped their shares worth Rs 1,071.83 crore.

“Jackson Hole Symposium starts today with Jerome Powell’s speech tomorrow. The market is awaiting his comments before taking the next call on market movement,” said Anil Kumar Bhansali, Head of Treasury, Finrex Treasury Advisors

Adar Poonawalla thanks US president Joe Biden for ‘vaccine coverage exchange’

Govindraj Muttepawar — Fri, 04 Jun 2021 13:44:03 +0000

Serum Institute CEO Adar Poonawalla has thanked US President Joe Biden and Exterior Affairs Minister S Jaishankar for a “coverage exchange” this is anticipated to spice up the manufacturing of coronavirus vaccines in India and different nations.

Thanks to the efforts of @POTUS, @WhiteHouse, & @DrSJaishankar, this policy change will hopefully increase the supply of raw materials globally and to India; boosting our vaccine production capacity and strengthening our united fight against this pandemic. https://t.co/bHADBwiUnm

— Adar Poonawalla (@adarpoonawalla) June 4, 2021

Mr Poonawalla stated the coverage exchange revoking an embargo at the export. of uncooked fabrics had to produce the vaccine will “fortify our united struggle in contrast pandemic”. “Due to the efforts of President of the USA, the White Space and Dr S Jaishankar, this coverage exchange will optimistically building up to provide of uncooked fabrics globally and to India; boosting our vaccine manufacturing capability and strengthening our united struggle in contrast pandemic,” he tweeted.

On Thursday the USA lifted an embargo imposed in February, beneath its Protection Manufacturing Act, to make sure native producers, together with Pfizer, had assets to supply doses for its inhabitants. A remark from the White Space stated the Biden management is now “assured in the provision of our approved vaccines” and “because of this, we are taking out DPA precedence scores for AstraZeneca (the vaccine manufactured and bought in India by way of the Serum Institute as Covishield), Novavax, and Sanofi”.

Exterior Affairs Minister S Jaishankar used to be in the USA final month to talk about the pandemic and tactics to “paintings with the USA on vaccine manufacturing”. “… as a result of the USA in the case of the availability chain, for vaccines, is basically indispensable,” he stated.

The USA has additionally stated India will obtain Covid vaccines from surplus inventory in that nation. Vice President Kamala Harris spoke to High Minister Narendra Modi Thursday night time to mention 25 million doses of Covid vaccines would be equipped to India and different nations in want as a part of the USA’s “Technique for World Vaccine Sharing”.

The USA plans to percentage no less than 80 million vaccine doses globally by way of the tip of this month. After the decision, the High Minister tweeted to thank the USA and Vice President Harris for the give a boost. In April Mr Poonawalla had tweeted to Mr Biden to induce him to raise the exports ban. “Revered POTUS, if we’re to in point of fact unite in beating this virus, on behalf of the vaccine trade out of doors the USA, I humbly request you to raise the embargo of uncooked subject matter exports… so vaccine manufacturing can ramp up,” he stated.

India’s WPI inflation picks up pace to 1.55% YoY

Sarthak Yadav — Mon, 14 Dec 2020 09:28:32 +0000

According to the data released by the Ministry of Commerce and Industry showed on Monday, that the wholesale prices have picked up in November with prices rising 1.55% from a year earlier.

As reported by the Reuters, the annual wholesale price index rose in November, mainly because of an increase in prices of manufactured items in the festival season, from a year earlier, compared to 1.62% rise predicted by analysts in a Reuters poll.

Retail inflation for industrial workers rose marginally to 5.91% in October from 5.62% in September this year mainly due to higher prices of certain food items.

India’s foreign exchange reserves continue to provide a bulwark against rupee volatility. India’s foreign exchange reserves rose $7.8 billion to touch a record high of $568 billion November. October saw net portfolio inflows of about $2.5 billion in India’s stock market, and November has seen a continuation of that trend

The all India Consumer Price Index for Industrial Workers (CPI-IW) for October 2020 increased by 1.4 points and stood at 119.5 points.

Dollar and Yuan battle for global supremacy

Aditi Swarup — Tue, 25 Aug 2020 12:33:39 +0000

Tensions between the USA and China have opened up a new avenue for competition amongst the superpowers – Currence Exchange Rates.
2020 has been a particularly bad year for global economies but the predicted drops in the value of the Dollar might make it worse for the United States.
The USA’s strategic competitors like Russia and China have already started moving away from the dollar. This compounded by the ease in Exchange rates by the Chinese government is worsening the situation for the dollar.
What makes the issue worse is that USA’s budget deficits keep increasing in a period that is already bogged down by inflation (which is likely to increase) as well as a massive recession in the United States with millions of people filing for unemployment.
While the dollar is still ‘safe’ for now given its status as the provider of safe long-term debts, we’ll have to watch out for future trend predictions to see if the Chinese Yuan will take over the race anytime soon.

Indian Rupee falls against US Dollar, $1 is now equal to ₹76.10

Anushka Sharma — Fri, 12 Jun 2020 13:29:55 +0000

Today, Indian Rupee fell sharply against US Dollar. It opened at ₹76.10 per $1 and traded in the range of ₹76.10 to ₹75.84 during the day. It settled at ₹75.84 per $1. The global economy is suffering due to the Coronavirus outbreak. The Sensex rebounded to end higher after being down about 1200 points at day’s low.

Overnight, all three major US stock market indices plunged over 5% each. The US dollar index, which measures the greenback against a basket of major currencies, was up 0.12% to 96.855 today, after strong overnight gains, indicating a flight to the safety of the dollar.

Abhishek Goenka, Founder and Chief Executive Officer at IFA Global said, “Tepid economic recovery projected by the Fed, signs of a second wave of cases in US cities that took the lead in opening up and elevated ‘continuing jobless claims’ caused investors to question the recent euphoria and conduct a reality check.”

“The US dollar has staged a comeback against the emerging market currencies and G7,” he added.

Yesterday, in capital market foreign institutional investors were net sellers. They sold shares worth ₹805.14 crores.

Investor sentiment remained fragile because of rise in COVID-19 cases. Rahul Gupta, Head of Research- Currency At Emkay Global Financial Services said, “The uncertainty over coronavirus won’t completely fade away unless there’s a vaccine to it. So until then the appreciation in rupee will be limited, and we expect it to remain volatile. Currently, the USD/INR spot is hovering near its crucial resistance of 76. A consistent trading above that would take price towards 76.50, while 75.50 will act as a crucial support.”

The data for industrial production of April and consumer price inflation of May is due post market hours today.