MARKET HEADLINES
- Rupee down 20 paise against dollar in early trade
The rupee depreciated by 20 paise to 63.48 against the US currency in early trade today at the Interbank Foreign Exchange due to the dollar's gains against its rivals overseas. BSE Sensex fell by 36.69 points, or 0.13 percent, to 27,469.77 in early trade today.
- Corporate sector running a huge forex risk with ECB:
Rupee was trading higher at 63.4175/4250 vs Monday's close of 63.24/25. Month-end dollar demand from oil companies fueled gains. Dollar rose on expectations of a rate hike by US Fed sometime next year. Pair was seen in 63.25 to 63.45 range during the day. There has been some recovery because of the US Federal Reserve statements. I continue to believe that the global environment remains very weak. Apart from the USA, all the other major economies are showing signs of weakness. I would also like to point out one interesting fact which again is not getting noticed today; the massive ECBs raised by the corporate sector. As per the RBI data, as of end June, they had raised about $153 billion. This is about an $18 billion increase over June of last year. If you see that even after June, RBI has given approval from about July to October of about another $10 billion of ECB raising by the corporate sector.
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