Currency

The government has set the dollar exchange rate at Rs 73.65 for import tax calculations effective September 21, compared with Rs 72.55 a fortnight ago.

The rupee is down about 12 percent this year, hitting successive lows over the past few weeks.

The benchmark 10-year bond yield ended Wednesday at 8.07 per cent versus its previous close of 8.14 per cent.

The decision to revise the minimum average maturity period of three years to one year on ECBs was part of the five measures announced by the government last week.

The rupee rose sharply against the US dollar to close at 72.37 on Wednesday, breaking its two-day fall. That marked the biggest single-day recovery in the rupee since March 14, 2017. The upmove in the rupee came on a day the government proposed a hike in effective import duty on some steel products, as part of its plan to cut "non-necessary" imports to defend the rupee. Heavy selling of dollars by banks and exports along with weakness in the greenback in global markets supported the rupee, news agency Press Trust of India reported. Despite the sharp rise on Wednesday, the rupee is still down more than 13 per cent so far this year, cementing its position as the worst-performing currency in Asia.

The government is also looking at curbs on imports of gold and high-end electronic items, a trade ministry source said last week.

The Indian rupee rebounded from its all-time low by rising 28 paise to 72.70 against the US dollar in early trade on Wednesday at the Interbank Foreign Exchange market, reported news agency Press Trust of India (PTI). The Indian currency recovered on fresh selling of the US currency by exporters and banks. According to forex dealers, easing crude prices in the global market and weakness in the dollar against other currencies overseas also helped the domestic currency rebound. A higher opening in the equity market also supported the recovery in the local currency.

The government's latest measures to support the rupee announced last week were particularly underwhelming for market participants who have since increased bearish positioning on the currency.

The rupee plunged further against the US dollar, to close 46 paise lower at a record 72.97 on Tuesday. That marked a fresh all-time closing low registered by the rupee against the greenback. Extended weakness in the rupee came on the back of rising crude oil prices and concerns on the intensifying US-China trade war front. The government had the previous day reiterated that global phenomena occurring owing to squeeze on oil production and the US-China trade war led to rupee depreciation. Analysts say that the measures announced by the government last week to support the rupee were particularly underwhelming for market participants.

Rupee Vs US Dollar: The rupee gained 10 paise to 72.41 against the US dollar amid volatility in early trade on fresh selling of the US currency by exporters and banks.

Rupee Vs US Dollar: Economy is recovering from two transitory disruptions - Goods and Services Tax and notes ban, says IMF spokesperson Gerry Rice.

Finance Minister Arun Jaitley said the two factors coupled with the internal economic decisions in the US were leading to strengthening of the dollar. The government had on Friday announced a series of steps to support the rupee and curb the widening current account deficit including relaxing overseas borrowing restrictions and limiting non-essential imports.

The rupee declined sharply against the US dollar on Monday, snapping gains registered in past two consecutive sessions. The rupee fell 67 paise to close at 72.51 against the greenback. The decline came after weekend announcement by the government to contain the rupee fall and lower current account deficit failed to bring cheer to the Street. The government said late on Friday that it would take measures to cut down "non-necessary" imports, ease overseas borrowing norms for the manufacturing sector and relax rules around banks raising masala bonds, or rupee-denominated overseas bonds. Analysts doubt the measures would lead to any meaningful inflows amid an overall negative investment sentiment for emerging markets.

Reports had quoted government sources as saying that it will have a $ 8-10 billion positive impact through forex savings or increased flows.

In mid-August, city-based economist Abhirup Sarkar suggested imposition of' restrictions' to stem the sharp slide of the rupee.