{"id":30915,"date":"2018-10-27T11:26:29","date_gmt":"2018-10-27T05:56:29","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=30915"},"modified":"2018-10-27T11:26:29","modified_gmt":"2018-10-27T05:56:29","slug":"rupee-weakens-as-dollar-demand-rises-after-fraud","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rupee-weakens-as-dollar-demand-rises-after-fraud\/","title":{"rendered":"Rupee weakens as dollar demand rises after fraud"},"content":{"rendered":"<p><a href=\"http:\/\/www.thehindu.com\/business\/rupee-weakens-as-dollar-demand-rises-after-fraud\/article22882694.ece\"><b>Rupee weakens as dollar demand rises after fraud<\/b><\/a><\/p>\n<p><b>Context:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">A marked increase in demand for dollars has been pushing the rupee lower in recent sessions as banks exercise increased caution over issuing buyer\u2019s credit, letter of credit (LC) and similar instruments for trade finance in the wake of the fraud uncovered at Punjab National Bank (PNB).<\/span><\/li>\n<\/ul>\n<p><b>Rupee depreciation:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The rupee, which closed at 64.89 to a dollar on Tuesday, slid to as low as 65.31 intraday before state-run banks stepped in and sold some dollars helping the Indian currency pare its losses.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The rupee closed at 65.17 to a dollar, down <\/span><span style=\"font-weight: 400;\">\u20b9<\/span><span style=\"font-weight: 400;\">0.28 when compared to the previous close.<\/span><\/li>\n<\/ul>\n<p><b>Factors responsible:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Since the PNB scam broke recently the rupee has depreciated 1.3% against the dollar.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> It has weakened about 2% this year making it the worst performing currency in Asia in 2018 after the Philippine peso, which has depreciated about 4.2%.<\/span><\/li>\n<\/ul>\n<p><b>Curbing volatility<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"> \u00a0<\/span><span style=\"font-weight: 400;\">The Reserve Bank of India maintains that it never targets a particular value for the rupee and only intervenes to curb volatility.<\/span><\/li>\n<\/ul>\n<p><b>Other factors that could impact the rupee:<\/b><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">The recent trend of the dollar strengthening internationally.<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">There has been an increase in dollar demand in the wake of the U.S. administration\u2019s recent measures to incentivise the nation\u2019s companies to repatriate earnings from overseas.<\/span><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Rupee weakens as dollar demand rises after fraud Context: \u00a0A marked increase in demand for dollars has been pushing the rupee lower in recent sessions as banks exercise increased caution over issuing buyer\u2019s credit, letter of credit (LC) and similar instruments for trade finance in the wake of the fraud uncovered at Punjab National Bank&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rupee-weakens-as-dollar-demand-rises-after-fraud\/\">Continue reading <span class=\"screen-reader-text\">Rupee weakens as dollar demand rises after fraud<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-30915","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704895728},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/30915","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=30915"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/30915\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=30915"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=30915"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=30915"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}