Indian rupee at record low

In May, the employee was paid Rs 1.42 crore (165,398,851 Chilean pesos) instead of his salary of Rs 43,000 (500,000 pesos). (Representative Image) The rupee touched a record low, sliding near 79 to a dollar, on June 29 as foreign investors continued selling local equities and crude oil prices rose. Experts say the sharp fall of the rupee can be attributed to the strength of the greenback and lower forward premiums, among others. Moneycontrol explains the reasons for the rupee’s depreciation. How much did the rupee depreciate? The rupee opened at 78.85 per dollar and slid to 78.95, an all-time high, during intra-day trade on Wednesday. On a weekly basis, the currency has depreciated 1.2 percent. Close Why is the rupee in a free fall? Central banks led by the US Federal Reserve tightening interest rates globally, increases in crude oil and commodity prices, lower forward premiums and weakening forex reserves are some of the reasons experts cite for … [Read more...] about MC Explains | Will RBI let the rupee adjust to new lows?

Deepak Parekh (File Image) We remain optimistic about the resilience of the Indian economy despite the high volatility in the global environment, said Deepak Parekh, Chairman, HDFC Life Insurance, at the firm's 22nd Annual General Meeting. He added that t he world’s largest COVID vaccination drive has allowed India to swiftly move beyond the acute phase of the pandemic that was witnessed at the start of the last financial year. "W e are now witnessing early signs of a sustainable economic revival. High growth in non - oil and non - gold imports reflects a pickup in domestic demand. Domestic economic activity is fuelled by private consumption and rising discreti onary spending," Parekh observed. Furthermore, the forecast for normal southwest monsoon this year is expected to support rural consumption, he said. Talking about the life insurance industry, he said that d espite the pandemic, the Indian life insurance industry’s new business … [Read more...] about HDFC Life 22nd AGM | Optimistic about resilience of Indian economy, says Deepak Parekh

Representative Image Policy support, including regulatory dispensations, helped the India’s banking sector navigate the COVID-19 pandemic and led to an improvement in asset quality in FY22, the Reserve Bank of India said in its Financial Stability Report released on June 30. The gross non-performing assets (GNPA) ratio of scheduled commercial banks declined to a six-year low of 5.9 percent in March 2022 from 7.4 per cent in March 2021, the RBI said. Net non-performing assets (NNPA) ratio also fell by 70 basis points during FY22 and stood at 1.7 percent as on March-end. Under the assumption of no further regulatory reliefs as well as without taking the potential impact of stressed asset purchases by National Assets Reconstruction Company Limited (NARCL) into account, stress tests indicate that GNPA ratio of all SCBs may improve to 5.3 percent by March 2023 from 5.9 percent in March 2022, according to the RBI. This is under the baseline scenario driven by higher expected … [Read more...] about RBI Financial Stability Report: Banks’ asset quality improving, GNPAs at 6-year low

- A + A (June 30): All emerging Asian currencies were set for half-yearly losses on Thursday, with the South Korean won set to lose the most, as policy tightening by the US central bank and concerns over global economic outlook spurred selling in Asian assets. The won dropped 8.4% so far this year, while the Philippine peso and Indian rupee were on track to post half-yearly losses of 7.3% and 5.8%, respectively. Emerging markets in the six-month period were battered by capital outflows due to the US Federal Reserve kicking off its tightening cycle, Russia's invasion of Ukraine, and inflation from higher commodity prices. Among local drivers, China's insistence on a zero-Covid policy also spurred selling as the country's repeated imposition of restrictions means a slower economic recovery for the region's largest economy. "The broader market ... they need some more convincing because I think at the back of their mind, they've still got this hesitancy due to the … [Read more...] about Asian currencies set for half-year losses on rate hikes, inflation woes

- A + A (June 30): Valuations are starting to turn attractive for South Korea bonds amid signs the market has overpriced how much the most hawkish central bank in emerging Asia may raise rates. Won forward rates are pricing in about 125 basis points of hikes over the next six months, far above economists’ forecasts for how much the Bank of Korea will move. This points to an improving environment for won bonds, the biggest loser among emerging-Asia’s sovereign debt this quarter as inflation quickened to a 14-year high and bets on rate increases jumped. Increased flows into Korean debt may help ease pressures on the won, which last week reached a 13-year low. The country is vulnerable to soaring imports exacerbated by a weak currency. It also means that Korean bonds may start to diverge from other emerging markets in Asia, where the risk of interest-rate swaps and yields moving higher is clouding the outlook. “We see value in Korean government bonds, as the market … [Read more...] about Bond traders bet market has swung too far on Korea rate hikes

Bank of Baroda reports profit of Rs 1779 crore in March quarter. Bank of Baroda has reported a standalone net profit of Rs 1,778.77 crore for the fourth quarter of 2021-22 as against a net loss of Rs 1,046.5 crore a year ago. However, on a sequential basis, the lender’s net profit fell 19 per cent from Rs 2,197.03 crore in the third quarter of last fiscal. Net interest income grew 21.2 per cent to Rs 8,612 crore from Rs 7,107 crore a year ago. Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Shares of Bank of Baroda (BoB) advanced higher in early trade on May 16, after the state-owned lender reported a nine-fold jump in its profit after tax (PAT) at Rs 7,272 crore for the financial year ended March 2022 as compared to a PAT of Rs 829 crore registered in FY21. At 11:20 am, the scrip traded at Rs 98.90 apiece on the BSE, up 4.16 … [Read more...] about Bank of Baroda shares gain after lender reports nine-fold jump in PAT for FY22

In a statement, Moody's said the rupee has depreciated around 4.5 per cent since the start of the year. (Representative image) Moody's Investors Service on Thursday said global credit conditions have turned more negative amid rising borrowing costs, protracted Russia-Ukraine conflict and slower economic growth. It said the surge in energy and food costs spurred by the conflict in Ukraine is weakening the purchasing power of households, raising input costs for companies and dampening investor sentiment. Among sovereign debt issuers, debt sustainability will be especially challenging for many frontier market sovereigns as their borrowing costs climb, while their economies still have not fully recovered from the COVID-19 pandemic crisis, it said. "Global credit conditions have turned more negative and will be tighter for the rest of the year amid rising borrowing costs, the prospect of a protracted military conflict between Russia and Ukraine, materially slower growth of the … [Read more...] about Global credit conditions more negative amid rising borrowing costs, slower economic growth: Moody’s

Tokyo is now battling its most severe heatwave for the month of June since records began in 1875. PHOTO: REUTERS TOKYO — A smothering heatwave now blanketing Japan is not only causing a power crunch in the country but is also raising fears of a drought. Wide areas in western Japan are now facing a crippling water shortage following the shortest rainy season on record, with water levels in dams less than half of what they would be in an average year. Municipalities like the cities of Matsuyama and Shikokuchuo in Ehime prefecture have begun to call on residents to ration water. Top government spokesman Hirokazu Matsuno told a regular news briefing on Tuesday that the government has a “strong sense of crisis” over the impact on water supply if the current heatwave were to continue. The risk of a drought, however, remains low in eastern Japan as there was heavy rainfall in the mountainous areas north of Tokyo. But eastern Japan is grappling with the spectre of a power crunch. … [Read more...] about Japan faces twin threats of power shortage, drought amid heatwave

Representative Image Delay in loan repayments and defaults across fintech lenders has halved from its peak of 4.83 percent in September 2021 to 2.26 percent in March 2022, according to data in the Reserve Bank of India's (RBI) annual Financial Stability Report (FSR). According to the data by credit information company TransUnion CIBIL quoted in RBI's FSR, fintech delinquencies were higher than that of private sector banks and non-banking financial companies (NBFCs) or housing finance companies (HFCs) during the peak in September last year. As per data for March this year, delinquency levels in NBFCs and HFCs stand higher at 2.34 percent, while private bank defaults are far behind at 1.40 percent. The data is based on repayments due past 90 days, which in banking are categorised as Non-Performing Assets (NPAs). TransUnion CIBIL’s fintech category comprises NBFCs registered with RBI and active in the digital lending category, as well as peer-to-peer lending platforms. … [Read more...] about RBI Financial Stability Report: Fintech delinquencies halved to 2.26% in March

Flying Fourth of July weekend or later this summer? Pack your patience and this game plan. Y ou know travelers are in for a bumpy Fourth of July weekend when airlines and the U.S. government begin pointing fingers at each other in the days ahead of the holiday. For months, travelers have been dealing with above-normal levels of flight delays and cancellations, with airlines chopping more than 15% of scheduled summer flights due to staffing shortages and other operational issues. Unfortunately, experts see more of the same on the horizon. “Looking at the past few weeks, I don't think there's any reason to think that things are going to go especially smoothly this weekend,” says Scott Keyes, co-founder of Scott’s Cheap Flights , an airfare deals newsletter with more than two million subscribers. “With 11 million travelers expected to fly over July Fourth, we are expecting a busy holiday weekend and travelers should be prepared for potential disruptions,” says Hayley … [Read more...] about The Smart Traveler’s Survival Playbook For Summer Flight Cancellations