Rupee in depreciation mode: RBI
The Re has moved in the range of Rs 39.89 to Rs 43.16 per dollar during Q1, RBI said in its Macroeconomic and Monetary Developments review. Financial mistakes
By PTI |
MUMBAI: The Indian currency has generally depreciated so far up to July 23, RBI said in its Macroeconomic and Monetary Developments review released here on Monday.
The rupee has moved in the range of Rs 39.89 to Rs 43.16 per US dollar during the first quarter, the review said.
It depreciated during Q4 of 2007-08 up to mid-March but thereafter appreciated till end-March this year, reflecting strong FDI inflows.
After trading in the range of Rs 39.89-40.02 per US dollar till April 22, the rupee broke above the value of Rs 40 per US dollar on April 24, the review said.
Thereafter, the rupee depreciated continuously, reflecting large capital outflows by FIIs estimated at $ 5.2 billion during Q1 FY 2009.
The rupee has moved in the range of Rs 39.89 to Rs 43.16 per US dollar during the first quarter, the review said.
It depreciated during Q4 of 2007-08 up to mid-March but thereafter appreciated till end-March this year, reflecting strong FDI inflows.
After trading in the range of Rs 39.89-40.02 per US dollar till April 22, the rupee broke above the value of Rs 40 per US dollar on April 24, the review said.
Thereafter, the rupee depreciated continuously, reflecting large capital outflows by FIIs estimated at $ 5.2 billion during Q1 FY 2009.
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The rupee also depreciated because of increased demand for dollars by oil companies and bearish stock-market conditions, the review said.
As on July 23, the exchange rate of the rupee was Rs 42.33 per US dollar and at this level, it had depreciated by 5.5 per cent over its level on March 31, 2008.
Over the same period, the rupee depreciated by 5.7 per cent against the Pound Sterling, 5.5 per cent against the Euro and 8.2 per cent against Chinese Yuan, while it appreciated by 1.8 per cent against the Japanese Yen, the review said.
Forward premia increased during Q1 FY 2009, reflecting the rising interest rate differentials on account of higher domestic interest rates and CRR hikes.
The average daily turnover in the foreign exchange market increased to $ 49.1 billion during April-June 2008 from $ 39.2-billion in the year-ago period.
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While the inter-bank turnover increased from $ 28.5 billion to $ 35.6 billion, the merchant turnover incrased from $ 10.8 billion to $ 13.6 billion.
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