Forex News — Currency Markets
Track rupee movements, RBI forex interventions, and global currency trends that affect Indian investors. This section covers the USD/INR pair, cross-currency dynamics, central bank policy shifts, and trade flow data that drive exchange rates. Currency moves have a direct impact on IT sector earnings, import-heavy industries, and international fund returns. Whether you are hedging forex exposure or simply want to understand why the rupee is moving, the updates here keep you informed.
US Treasury bond buybacks spark fresh fears over dollar weakness
The US Treasury’s expanded bond-buyback programme has raised concerns that efforts to contain long-term borrowing costs could pressure the dollar. Rising yields, fiscal deficits and heavy debt issuance are intensifying market scrutiny. While some investors see echoes of earlier interventions, others view the move as limited. The policy’s longer-term currency impact remains uncertain.
HDFC Bank's record dollar bond sale makes it top issuer under RBI window
HDFC Bank has achieved a remarkable feat by securing $1.75 billion through a dual-tranche dollar bond issuance, marking the largest single debt fundraising effort by any Indian bank. This successful venture included selling five-year bonds worth $1.25 billion and three-year bonds worth $500 million. With investor demand surging to about $7 billion in bids, banks are hurrying to gather funds before the central bank facility's closure on August 31.
Rupee opens 7 paise higher at 95.64 against US dollar
Rupee opens 7 paise higher at 95.64 against US dollar
Using An Axis Credit Card? New Rules Kick In From Aug. 28: Rewards, Late Fees And More
The most significant change for customers travelling abroad or shopping at international merchants is a steep increase in the Dynamic Currency Conversion (DCC) markup.
Indian equity markets rally nearly 1% as dollar retreats and US bond yields cool
The Indian stock market rebounded on Thursday, marking the end of a downward trend. Major indices Nifty and Sensex enjoyed notable gains, supported by a robust response in midcap and smallcap sectors. A weakening dollar index alongside declining US bond yields positively impacted emerging markets. Nonetheless, bond yields in India increased, influenced by recent hawkish policy discussions.
EM Currencies Mixed as Treasury Buyback Lift Proves Short-Lived
Emerging-market currencies were mixed on Thursday as the US Treasury’s announcement of increased bond buybacks was seen by many as a “temporary” measure, allowing the dollar to rebound.
Dollar rebounds from losses sparked by Treasury buyback plan
GLOBAL-FOREX/ (UPDATE 6):FOREX-Dollar rebounds from losses sparked by Treasury buyback plan
Canadian dollar hits near 3-month high as oil prices climb
CANADA-FOREX/:CANADA FX DEBT-Canadian dollar hits near 3-month high as oil prices climb
Rules eased to help exporters receive payments in rupees
India has eased rules for rupee-based export payments, allowing exporters to invoice and receive payments in Indian currency or foreign currencies from non-ACU countries. Rupee export realisations will now qualify for trade-policy benefits and count towards export obligations, helping promote wider use of the rupee in international trade.
RBI's special FCNR(B) deposit deadline nears: Should investors tap this opportunity before 31 August? Expert weighs in
The RBI has cut short the deadline for its special FCNR(B) deposit swap facility to 31 August from 30 September. With the window closing soon, NRIs need to weigh the potential benefits of higher foreign currency returns against the lock-in and liquidity considerations.
India amends Foreign Trade Policy for easier rupee invoicing and payments for exporters
The government has amended its Foreign Trade Policy to ease rupee invoicing for exporters. Eligible rupee receipts now qualify for export benefits and obligations, aligning with new regulations. This change applies to exports to all countries, with specific rules for ACU members. Rupee settlements may reduce costs and risks for Indian exporters. The amendment aims to support wider international use of the Indian rupee.
HDFC Bank raises record $1.75 billion in overseas bond sale
HDFC Bank raised a record $1.75 billion through three- and five-year dollar bonds, marking the largest debt capital market raise by an Indian financial institution. Strong investor demand generated over $7 billion in bids, enabling tighter pricing and supporting FCNR(B) deposit funding.
India eases rules for rupee export payments, seeks to widen trade settlement
India has eased export payment rules, allowing rupee settlements with non-Asian Clearing Union countries. This move aims to promote wider use of the local currency in international trade transactions. Eligible rupee export receipts will now qualify for trade-policy benefits and count towards exporter obligations. The changes align with recent Reserve Bank of India foreign-exchange rules permitting broader rupee usage.
Cross-Border Trade In Local Currencies Reduces Transaction Costs: RBI Deputy Governor
Rohit Jain also highlighted that unauthorised entities offering online forex trading are seen to operate outside FEMA and ETP regulation altogether.
Cross-border trade in local currencies reduces transaction costs: RBI deputy governor
Local currencies will increasingly drive cross-border trade and payments, reducing costs and improving efficiency. Technology will be leveraged across the entire customer transaction chain for digital origination and reporting. India's foreign exchange reserves have significantly grown, and domestic forex market turnover has doubled recently. The market faces challenges with skewed participation and unauthorized online trading platforms operating outside regulations.
US dollar at 3-month low as Treasury moves to soothe bond jitters
The U.S. dollar weakened near three-month lows as Treasury bond buybacks calmed markets. Long-term Treasury yields retreated from recent nineteen-year highs after the Treasury's announcement. Federal Reserve meeting minutes revealed policymakers' concerns about persistent inflation and potential rate hikes. The Japanese yen found some relief from its recent sharp depreciation against the dollar. Investors now await the Jackson Hole Symposium for further clues on monetary policy direction.
Rupee spins wheels in thin band, shorts await fresh entry points
The Indian rupee traded in a narrow range on Thursday, supported by central bank actions. Global factors showed limited impact as the Reserve Bank of India maintained currency stability. Speculative positioning remains cautious, with a lean towards further rupee depreciation. Elevated oil prices pose a significant macroeconomic risk for India's energy imports. Analysts anticipate potential rate hikes if inflation breaches the central bank's tolerance band.
RBI's surprisingly hawkish tone in policy minutes weighs on Indian bonds
Early Thursday saw a significant sell-off in Indian government bonds as minutes from the central bank's recent policy meeting hinted at possible rate hikes. Policymakers conveyed increased concerns about inflationary pressures within the economy. Additionally, soaring oil prices exacerbated anxieties about rising interest rates, potentially putting further strain on the rupee and negatively impacting the inflation forecast.
Rupee rises 17 paise to 95.56 against US dollar in early trade
During early trading on Thursday, the rupee showed resilience, strengthening against the US dollar as a result of the US Treasury's unexpected announcement to increase bond buyback operations. This led to a decline in the dollar index to its lowest point since late May. Meanwhile, the dollar faced added pressure from waning expectations of further tightening from the Federal Reserve, although high oil prices continue to strain India's import expenses.
Rupee opens 19 paise higher at 95.56 against US dollar
Rupee opens 19 paise higher at 95.56 against US dollar
RBI's early FCNR(B) deposit scheme closure 'data-driven' or a policy U-turn? Governor Malhotra explains
RBI Governor Sanjay Malhotra defended the FCNR(B) deposit scheme's early closure. He stated the decision was data-driven and a prudent calibration. This move aims to attract $80 billion into India's economy. The central bank cited stronger than expected dollar inflows for the adjustment. The RBI remains committed to managing exchange rate volatility and market conditions.
Dollar hugs three-month lows as Treasury seeks to sooth the bond market
On Thursday, the U.S. dollar faced notable declines, approaching its lowest point in three months. In a bid to stabilize the bond market, U.S. Treasury disclosed plans to double its buyback operations. Meanwhile, long-end Treasury yields fell from a nineteen-year peak. Meeting minutes from the Federal Reserve underscored concerns about inflation and possible interest rate hikes. The Japanese yen also retreated from the 160 mark versus the dollar.
Rupee falls to a 3-week low of 95.71, raising financial concerns
The Indian rupee closed at a three-week low of 95.75 on Wednesday. Substantial central bank interventions prevented further losses for the local currency. The RBI has consistently intervened for nine trading sessions, arresting rupee weakness. This action occurred as oil prices continued to soar significantly. Indian equity indices also fell, reflecting the impact of soaring energy costs.
Global Market Today: Asian stocks rise after bond rally, dollar steady
Asian stocks advanced as the US Treasury announced debt buyback plans. This move eased pressure on the bond market and stabilized the dollar. South Korean shares surged, led by SK Hynix's buyback announcement. Global bonds had experienced a selloff due to inflation and debt concerns. Investors are also reviewing Federal Reserve meeting minutes for inflation outlooks.
India may see family wealth worth $1.5 trillion change hands in 10 years
India anticipates a significant intergenerational wealth transfer exceeding one trillion dollars. Family wealth is becoming more institutionalized with formal governance structures. This trend will expand the alternatives market significantly in the coming decade. India's billionaire and ultra-high-net-worth individual numbers are projected to increase. Exits and liquidity events are driving demand for wealth management services.
India’s family offices prepare for $1.5 trillion wealth transfer
India anticipates a significant intergenerational wealth transfer exceeding one trillion dollars. Family wealth is becoming more institutionalized with formal governance structures. This trend will expand the alternatives market significantly in the coming decade. India's billionaire and ultra-high-net-worth individual numbers are projected to increase. Exits and liquidity events are driving demand for wealth management services.
US dollar falls to lowest level since late May after Treasury doubles bond buybacks
The US dollar continues to decline, hitting multi-week lows as the Treasury doubles its debt buyback programme to stabilise the bond market. Yields have dropped amid heightened fiscal concerns and inflation, prompting a rally in longer-dated Treasuries.
Oil pain pins India bonds in range; RBI minutes to give next cue
Indian government bonds showed little movement on Wednesday, trading in a tight range. The increase in oil prices countered support drawn from softer U.S. Treasury yields, which affected trader sentiment. Market participants are now looking ahead to the impending policy minutes from the U.S. and Indian central banks for insights on future directions. The Indian rupee experienced a decline against the dollar, prolonging the Nifty 50 index's losing streak.
Oil India vs ONGC vs OMCs: What JM Financial’s $80 Brent call means for oil stocks
Brent crude may stay near eighty dollars a barrel for twelve months. Analysts favor Oil India and ONGC due to expected earnings growth. Oil India's refinery capacity expansion will drive future output increases. Oil marketing companies face pressure from lower integrated gross margins. Valuation and earnings concerns persist for HPCL, BPCL, and IOCL.
Indian Bank raises $400 million for four years
Indian Bank raised $400 million through a four-year overseas funding programme via its GIFT City branch, joining Indian lenders tapping global debt markets. Banks are accelerating dollar bond issuances following regulatory changes to the concessional swap window for FCNR deposits. Axis, ICICI, Federal, IDFC First, Kotak Mahindra and Yes Bank are also active.
India bonds cling to range as traders parse oil risk
Indian government bonds experienced restrained trading on Wednesday, influenced by softer U.S. Treasury yields which offered some stability. Nevertheless, rising oil prices dampened domestic morale, impacting the rupee's performance. Market participants are keenly awaiting the Reserve Bank of India's policy minutes for insights. Domestic investors and state-owned lenders have been pivotal in restraining yield increases.
Rupee may slip on oil, risk-off mood; RBI once again expected to ride to rescue
The Indian rupee is likely to experience a lower opening on Wednesday amidst climbing oil prices and increasing U.S. Treasury yields. The sentiment in the market is further influenced by the Reserve Bank of India's swap facility announcement. In an effort to bolster the currency, the central bank is selling dollars daily. Market participants are closely monitoring any intervention near the 95.80-96.00 range.
Freelancing For US Companies From India? Key ITR FAQs Answered
From converting dollar payments into rupees to filing the right ITR, claiming business expenses and dealing with GST, there are several rules freelancers need to keep in mind.
Dollar drifts near multi-month lows as Treasury yields ease; Fed minutes awaited
The U.S. dollar slipped against leading currencies on Wednesday, influenced by a decline in treasury yields from their recent highs. Investors are keenly awaiting the Federal Reserve's minutes, anticipating guidance on interest rate trends. The euro and sterling gained ground slightly as they approached critical inflation reports. Additionally, oil prices surged to nearly three-week peaks amid escalating tensions in the Middle East.
HSBC India offers zero forex markup on all credit cards — What this feature means for your travels abroad, explained
HSBC India is offering customers zero forex markup on all of its credit cards. We take a look at what this charge is, how it is calculated and explain what this could mean for the cost of your travels abroad.
Kotak Mahindra Bank raises $650 million in debut dollar bond sale
Kotak Mahindra Bank raised $650 million through its debut five-year dollar bond, pricing notes at 108 basis points over US Treasuries. Strong demand from Asian and European investors helped tighten pricing from initial guidance, with orders reaching $2.1 billion.
Realty firms, PE funds commit Rs 13K cr investment since 2025 to build senior living homes: Colliers
A staggering investment of over thirteen thousand crore rupees has been earmarked for the creation of senior living communities, enabling the construction of seventy-five thousand new units. The senior living sector is witnessing rapid growth, with more strategic collaborations emerging between providers and healthcare services. This rising market is increasingly recognized as a desirable lifestyle option for older adults.
Four Indian private banks eye dollar debt before RBI swap window deadline, bankers say
Four Indian private lenders are accelerating dollar bond plans before August 31. They aim to raise $1.85 billion, taking advantage of a central bank swap facility. Kotak Mahindra Bank leads this effort, setting final price guidance for its issuance. Other banks like YES Bank, IDFC First Bank, and Federal Bank are also preparing offerings. This comes after ICICI Bank and Axis Bank successfully raised over $1 billion.
Currency In Circulation Continues To Rise Despite Higher Digital Transactions, RBI DG Murmu Says
RBI Deputy Governor Shirish Chandra Murmu said 176 billion banknotes are currently in circulation in India, despite the rapid adoption of UPI and digital payments.
Rupee ends marginally lower as central bank shields from oil, yield strain
The Indian rupee experienced a minor decline on Tuesday, with speculation that the Reserve Bank of India intervened to bolster its position. Contributing factors included high oil prices and climbing global bond yields, which put additional stress on the currency. Concurrently, yields on Indian government bonds rose, and there was a slight dip in local stocks, shifting focus to the forthcoming minutes from the central bank's policy meeting.
India imposes minimum import price on clear float glass to curb cheaper imports
To safeguard its local glass industry, India has enacted a minimum import price for clear float glass, directly benefiting manufacturers like Saint-Gobain. This policy, announced by the Directorate General of Foreign Trade, will restrict imports priced below thirty-four thousand rupees per tonne and will be in effect for the next year, aiming to enhance domestic production.
RBI finds cash demand harder to predict as digital payments grow
RBI faces challenges forecasting demand for banknotes as currency in circulation continues to grow at double-digit rates despite rising digital payments. Deputy Governor SC Murmu said cash remains widely used, particularly in rural areas, among low-income groups and small businesses.
Global Market: Emerging Asian currencies rise as softer dollar, rate-hike bets support sentiment
Asian currencies strengthened modestly as a weaker US dollar and fading expectations of a September Federal Reserve rate hike supported emerging markets. However, rising oil prices amid Middle East tensions capped gains. Indonesia remained in focus ahead of Bank Indonesia’s policy decision, while Asian equities weakened amid broader risk aversion and energy concerns.
India's economic growth to slow to 6.8% in FY27 amid West Asia crisis, El Nino impact: Re
India Ratings and Research has raised its FY27 GDP growth forecast to 6.8% from 6.7%, but expects growth to slow from 7.6% in FY26 amid inflation, rupee weakness and El Nino risks.
India's economic growth to slow to 6.8% in FY27 amid West Asia crisis, El Nino impact: Ind-Ra
India Ratings and Research has raised its FY27 GDP growth forecast to 6.8% from 6.7%, but expects growth to slow from 7.6% in FY26 amid inflation, rupee weakness and El Nino risks.
RBI measures lift FY27 BoP outlook to over $50 bn surplus, CAD seen at 1%: SBI Research
FCNR(B) deposits: In FY27, India is anticipated to enjoy a balance of payments surplus amounting to USD 50 billion, driven by robust foreign currency inflows that are set to greatly benefit the nation's external economic stability. The Reserve Bank of India’s deposit scheme has successfully attracted considerable foreign exchange investments. This initiative's goal is to enhance external liquidity, with forecasts indicating an appreciation of the rupee against the US dollar shortly.
Indian bonds wobble on oil strain, RBI swap pullback
On Tuesday morning, Indian government bonds faced a downturn as oil prices spiked beyond ninety dollars. Concerns escalated after the central bank prematurely ended a diaspora deposit scheme, leading to uncertainty in the market. This pullback in liquidity support has rendered bonds susceptible to changes in oil prices and international rates. The five-year note saw a significant yield rise recently.
ICICI Bank dollar debt fundraising tops $2 billion in a month: Bankers
ICICI Bank triumphantly secured $750 million through a fresh dollar bond issuance, making it the bank's third successful fundraising attempt in just one month. The bond was priced at a tighter spread than initially anticipated. The funds generated will be utilized for the bank's general corporate needs, bringing the total dollar debt raised by ICICI Bank to a remarkable $2.05 billion.
Paytm’s Vijay Shekhar Sharma sets $1 billion free cash goal, sees fintechs gaining lending share
Vijay Shekhar Sharma, the founder of Paytm, has set an ambitious target of generating one billion dollars in free cash flow. He envisions that fintech companies will capture a larger share of the growing lending market. Focusing on profitability, Sharma plans to pivot away from ventures that lack clear returns.
Rupee opens 6 paise lower at 95.66 against US dollar
Rupee opens 6 paise lower at 95.66 against US dollar
Frequently Asked Questions
What moves the USD/INR exchange rate?
The rupee's value against the dollar is driven by India's trade deficit (more imports than exports weaken the rupee), foreign institutional investor (FII) flows in and out of Indian markets, RBI intervention through dollar buying or selling, US Federal Reserve interest rate decisions, crude oil prices, and overall global risk sentiment. When FIIs sell Indian equities and repatriate dollars, the rupee depreciates; when they bring money in, it appreciates.
How do currency movements affect my stock investments?
A weakening rupee benefits IT exporters and pharma companies that earn in dollars but report in rupees — their revenues increase in rupee terms. Conversely, companies that import raw materials (like oil refiners, auto makers, and electronics firms) see higher input costs when the rupee falls. For investors in US-focused mutual funds or international ETFs, a depreciating rupee adds to returns, while an appreciating rupee can eat into gains.
Does the RBI control the exchange rate?
The RBI does not fix the exchange rate — it manages a floating rate regime. However, it actively intervenes in the forex market to smooth excessive volatility. When the rupee depreciates too fast, the RBI sells dollars from its reserves to support it. When it appreciates too quickly, the RBI buys dollars to prevent exporters from being hurt. This managed float means sharp one-day moves are less common than in fully free-floating currencies.