Indian rupee rises on RBI’s gold move

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Updated 05 June 2013

Indian rupee rises on RBI’s gold move

MUMBAI: The Indian rupee rose yesterday after five days of falls, as further restrictions on gold imports by the central bank helped ease some worries over the country's record current account deficit.
India is likely to raise the cap on foreign investment in sovereign debt by $ 5 billion soon, two finance ministry officials said, a move that may support the sliding rupee and help fund a high current account gap.
The Reserve Bank of India extended the restrictions on the import of gold on consignment basis by banks to all nominated agencies and trading houses.
The rupee lost 4.8 percent of its value in May and was the worst performing Asian currency last month. On the year, the unit is down 2.6 percent.
As the global market tide sweeps the rupee close to an all-time low, raising current account financing and inflation risks, policymakers for now are more likely to use small-scale intervention and administrative measures to defend the currency.
"The gold restrictions and FII limit hike have cheered market participants. There are also some flows expected in June, so we may see some positive for the rupee," said Uday Bhatt, a senior foreign exchange dealer with UCO Bank.
Flows from Unilever Plc, which plans to pay up to $ 5.4 billion to raise its stake in its Indian subsidiary Hindustan Unilever Ltd., are expected in June. The open offer opens on June 21 and closes on July 4.
The partially convertible rupee closed at 56.44/45 per dollar compared with 56.76/77 on Monday, after moving in a wide range of 56.39 to 56.7350 during the day.
"We can't rule out the risk of USD/INR creating new high in the near term as expectation for US QE (quantitative easing) tapering off is likely to remain strong before the September US FOMC meeting," said Ju Wang, a senior foreign exchange strategist at HSBC in Hong Kong.
Fears of a gradual withdrawal of the Fed stimulus were the key reason for a global dollar rally in May, which pushed down almost all Asian currencies.
In the offshore non-deliverable forwards, the one-month contract was at 56.75 while the three-month was at 57.32.
In the currency futures market INRFUTURES, the most-traded near-month dollar/rupee contracts on the National Stock Exchange, the MCX-SX and the United Stock Exchange all closed at around 56.67 with a total traded volume of $ 5.3 billion.

Saudi minister Al-Falih says Aramco IPO likely in 2019

Updated 25 May 2018

Saudi minister Al-Falih says Aramco IPO likely in 2019

  • Energy Minister Khalid Al-Falih: “We are ready, the company (Saudi Aramco) essentially has ticked all the boxes. We’re simply waiting for a market readiness for the IPO.”
  • Khalid Al-Falih: “Most likely it will be in 2019 but we will not know until the announcement has been made. All I could say is stay tuned.”

RIYADH: Saudi Arabia is most likely to hold the initial public offering (IPO) of oil giant Aramco in 2019, Energy Minister Khalid Al-Falih said on Friday, confirming a delay from the initial plan to list the company this year.

“The timing I think will depend on the readiness of the market, rather than the readiness of the company or the readiness of Saudi Arabia,” Khalid Al-Falih, who’s also the company’s chairman, said at the St. Petersburg International Economic Forum in Russia on Friday.

“We are ready, the company essentially has ticked all the boxes,” he said. “We’re simply waiting for a market readiness for the IPO.”

For almost two years, Saudi officials said the IPO was “on track, on time” for the second half of 2018. But for the first time in March they suggested it could be delayed until 2019.

“Most likely it will be in 2019 but we will not know until the announcement has been made,” Al-Falih said. “All I could say is stay tuned.”

The Aramco IPO would be a once-in-a-generation event for financial markets. Saudi officials said they hope to raise a record $100 billion by selling a 5 percent stake, valuing the company at more than $2 trillion and dwarfing the $25 billion raised by Chinese retailer Alibaba Group Holding Ltd. in 2014.