The union government today permitted international trade settlements in the Indian currency for export promotion schemes under foreign trade policy. “The Government of India has made suitable amendments in the Foreign Trade Policy and Handbook of Procedures to permit for international trade settlement in Indian rupees,” the Ministry of Commerce and Industry has said.
Benefits of international trade in Indian rupees
“Given the rise in interest in the globalisation of the Indian Rupee, the given policy amendments have been undertaken to facilitate and to bring ease in international trade transactions in Indian rupees,” the government said in the statement.
The ministry said the changes had been notified for imports for exports, export performance for recognition as status holders, the realisation of export proceeds under advance authorisation and duty-free import authorisation schemes, and the realisation of export proceeds under the export promotion capital goods scheme.
Rupee rises, oil prices fall are factors
Meanwhile, the rupee appreciated by 45 paise to close at 81.47 (provisional) against the US dollar today amid a fall in crude oil prices, dollar weakness and sustained foreign fund inflows. At the interbank foreign exchange market, the local unit opened at 81.43 and witnessed an intra-day high of Rs 81.23 and a low of Rs 81.62 during the session.
The local unit finally settled at 81.47 against the American currency, registering a rise of 45 paise over its previous close.
Two days ago, the Indian rupee had settled at 81.92 against the US dollar. The forex market was closed yesterday because of the Gurunanak Jayanti holiday.
Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, rose 0.18% to 109.83.
Global oil benchmark Brent crude futures fell 0.64% to USD 94.75 per barrel.
“(The Indian) Rupee continued to gain strength as the broader dollar witnessed selling pressure at higher levels. The greenback continued to remain weighed down also ahead of the US mid-term elections results,” said Gaurang Somaiya, Forex and Bullion Analyst, Motilal Oswal Financial Services.
Some market participants suggest a strong chance of Republicans winning a House majority and a tight race for Senate control. “We expect the USD-INR (Spot) to trade sideways and quote in the range of 81.30 and 81.80,” Somaiya said.
On the domestic equity market front, the 30-share BSE Sensex declined 151.60 points or 0.25% to end at 61,033.55, while the broader NSE Nifty fell 45.80 points or 0.25% to 18,157.00.
Foreign Institutional Investors were net buyers in the capital markets as they purchased shares worth Rs 1,948.51 crore on Monday, according to exchange data.