Rupee Posts on Forex Blog
Having Screwed Up the Futures Markets, Indian Government Turns to the Forex Markets
May 19, 2008
Indian is quickly turning into one of the worst places for speculative traders AND hedgers. Last year, they banned futuers trading in wheat, rice, tur, and urad. This year they added a ban on trading futures in the Soya complex. (It should be noted they were gracious enough to avoid a ban on sugar trading - so far).
And last Friday, it became the forex market's turn, as the government enacted a 0.25% tax on all buys AND sells. Most brokers have already passed the cost of the full tax onto retail customers. However, the wholesale industry, which makes up about 60% of the forex market in India, is unsure about the tax. On Friday, wholesale currency traders bought a mere 5% of their norm - yikes! One Mumbai dealer commented that with &#quot;wafer-thin" margins of 0.35% - 0.75%, a 0.25% would leave nothing for the wholesalers.
Read more at India Times
Rupee, India
Indian Rupee at 13 Month Low, Housing Hit Hard Q1
May 15, 2008
The Rupee was down 0.7% Thursday, hitting 42.75/76 against the dollar. This is the lowest level since mid April 2007. High oil prices plus weak housing data in the first quarter have steadily lead currency traders out of the Rupee.
Housing has suffered in India's major markets this year. Markets in Bangalore, Mumbai, Chennai, and Pune are reporting a 15-20% decline in prices. Other major locales such Delhi, Maharani Bagh, and Hauz Khas have seen 5-10% declines.
Oil is India's biggest import, as such the meteroic price increase has hit them especially hard. India' oil import bill was up more than 33% for their economic year of 07-08.
Read more at the India Times on Rupee and India Times on Housing
Rupee, India, housing
India Inflation Hits 3 Year High of 7.41%
Apr 11, 2008
Rising food prices in fruits and vegetables, spices, wheat, and fish sent India's inflation to a 3 year high of 7.41%. The number was well above expectations, as the market expected a reading of 7.05%.
The Reserve Bank of India (RBI) is scheduled to meet April 29. The new inflation numbers has raised expectations that bank will act to curb inflation.
Read more at Times of India
Rupee, inflation
