Capital market regulator SEBI had also sought information from China this week about the owners of foreign portfolio investment (FPI). This will show that the external investment coming through China, who owns it
SEBI also sought information from China on the owners of foreign portfolio investment (FPI) this week. The strategy to pressure China by weakening the rupee may also work, compared to the thedollar.
India’s preparations to surround China are still in progress. After the ban on the Chinese app, the Reserve Bank of India (RBI), stock market regulator SEBI and the Customs Department are doing their work in different ways. While the Reserve Bank is constantly buying dollars, Sebi and Custom are constantly engaged in checking.
Consecutive dollar purchases
According to the information, the RBI is continuously making purchases of dollars. The reasons behind this and what is the most trustworthy thing is that it may be an attempt to discourage cheap Chinese imports and to promote domestic manufacturing. The move to weaken the rupee to make this a little further may be part of a strategy to pressurize China in view of geopolitical tensions.
Custom is checking every consignment
Customs (Customs) is fully investigating every consignment coming from China. Not a single item is being discarded during this time. Capital market regulator SEBI had also sought information from China this week about the owners of foreign portfolio investment (FPI). In the coming week, the impact of the US election on the dollar, it will be known as the presidential election draws near. The possibility of a pre-election agreement between the Democrats and the White House on fiscal stimulus seems far-fetched.
So what it means in terms of the package of incentives to the election result will be seen from a different perspective.
Rupee moves against the dollar
The rupee closed in the 73.30 to 73.50 range this week after a decent performance in the last few days. The surprising thing is that despite the global weakness in the dollar market, public sector banks continued to buy the dollar aggressively. Despite registering gains in domestic equity and bonds markets, the rupee remained weak.
The yuan strengthened against the dollar
Although the Chinese yuan strengthened against the dollar, the rupee weakened. As a result, for the first time since September 2013, the rupee lost 11 paise against the yuan. Although speculators and public opinion polls indicate Biden’s victory, the contest in the Senate looks like a thorn. If the Republican manages to retain control of the Senate, it could be positive for the US dollar.
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Rupee can go up to 74.30
Rupee can go up to 74.30 level against US dollar. While at the bottom it can see a very critical support of 72.50. Any subsequent fall can be a sign of a major event. So that it can go further down. The rupee may remain between 73.50 and 74.30 this week.