Senior Visa official lauds progressive steps taken by the UAE
business3 days ago
“We must find ways to manage a competitive exchange rate without hurting investments,” Chidambaram told a conference organised by the Hindustan Times newspaper late on Friday.
The rupee is in an “uncomfortable zone,” he said.
Lifted by a tide of overseas money into domestic shares following a cut in US interest rates last month, the currency strengthened beyond the psychologically key 40 rupees to the dollar barrier.
“This is a new situation,” Chidambaram said. “But we are not alarmed by it. We will gain mastery.”
The rupee finished the week Friday flat against the dollar at 39.3, a nine-and-a-half year high.
Dealers say the central bank has been buying dollars to restrain the rupee’s rally and protect exports which have been slowing.
But analysts say there is relentless upward pressure on the rupee and expect it to gain further as foreign investors buy shares and pour money into plants and infrastructure projects to exploit the booming economy.
As of Friday’s finish, the benchmark Bombay Stock Exchange Sensitive Index, or Sensex, had gained nearly 34 percent this year, led by record net overseas fund inflows of 16.54 billion dollars.
Some analysts say the rupee could be at 38 to the dollar by mid-next year or even lower. The rupee has already risen by over 11 percent this year against the dollar, making it Asia’s best performing currency.
Chidambaram said as long as investors were getting good returns ”I don’t believe they are waiting to take their money out.”
The benchmark Sensex stock exchange index has risen over 15 percent since the US Federal Reserve cut interest rates by 50 basis points on September 18.
“The liquidity outlook for India equities remains positive... but the magnitude remains excessive by historic standards,” said Bharat Iyer, head of equities at J.P. Morgan Chase.
Senior Visa official lauds progressive steps taken by the UAE
business3 days ago
Under its 'Journey 2030' strategy, it plans to bolster Abu Dhabi's role as a travel hub connecting Asia and Europe
business3 days ago
Partnership aims to boost growth of companies operating within Dubai CommerCity and broaden their reach
business3 days ago
Prize purse valued at over half a million dollars
business4 days ago
Leaders underscored the need to explore new areas of untapped potential
business4 days ago
Data highlights Abu Dhabi’s increasing attractiveness as a leading hub for technological innovation and business
business4 days ago
Events such as the Dubai Shopping Festival, Pre-Ramadan, and Ramadan Sale impacted consumers spending
business4 days ago
First timers should consider entry through an aggressive hybrid equity fund
business4 days ago