Bookmakers Are Betting on Rupee Strength
The Reserve Bank of India or Rupee has announced a large scale cash gifting plan for its citizens to celebrate the festive season. The move comes as the Indian government embarks on a series of measures to infuse more cash into the economy. A significant portion of Rupees 3.6 trillion dollars will be released to the financial market in the hope to spur economic activity. This is the first time that the Reserve Bank of India has issued foreign currency since November. The move is expected to spur corporate spending, which in turn will help bolster the country’s infrastructural development, thereby creating more jobs.
According to the Rupee’s recently published annual report, “The Reserve Bank of India, together with the Department of Finance of the Indian government, is undertaking an analysis of the demand and supply conditions in the Rupee/UR basis.” “This exercise is part of the efforts of the authorities to improve the functioning of the economy,” the report added. The goal is to “improve the value of the Rupee against the dollar.” The Reserve Bank of India has also revealed some of the reasons why the nation’s economy is expected to perform strongly this festive season.
“A significant increase in the purchase of Rupees by Indian residents would imply a rise in demand for the Rupee abroad,” the Reserve Bank of India emphasized. “Commerce, manufacturing and services sectors are all expected to pick up from this year’s output level,” it further explained. “Aided by these positive indicators, we believe that Rupees are likely to be strengthened against the dollar at this point of time.” However, it is important to note that the Reserve Bank of India has not explicitly mentioned any intention to buy back Rupees by any means.
In its latest financial review, Pricewaterhouse Coopers revealed that there are still a significant number of non-domestic tourists visiting India every year. According to the PPC report, there are six foreign nations, which account for over 40% of the gross domestic product (GDP) of India. Looking at the current scenario, it can be said that Rupee strength is still linked to the strength of the Indian economy, but it can only be considered as a support medium. “There are various reasons behind Rupee strengthening versus the US dollar, and this is something that can only be explained by the Indian government and its decision to let go of the import duty on cruises,” said Soumyareshwar. ” Rupee strength will depend on the kind of economic policies that the government brings into practice over the next few years.”
“The Reserve Bank of India has not directly addressed the issue of sportbooks and online gambling in India,” said Soumyareshwar. “However, there is a feeling among experts that the introduction of UFA into the Rupee list may indirectly affect the country’s online gambling industry.” “Rupee strength will remain dependent on the economic policies of the Indian government, and experts believe that a shift in policy may soon be brought about by the end of the current government.” “I think it’s quite possible that in the coming years, the Rupee may become stronger against the dollar,” said Subir Ghoshal, chief executive officer of Betfair Securities Pvt Ltd, an investment company specialising in equities.
” Rupee strength is linked to the US dollar and not with any other currencies, and the situation in India has weakened the currency against all currencies,” said Gaurav Dhevanthi, chief executive officer of Betfair. ” Rupee may become vulnerable if the Reserve Bank of India removed the UFA facility from its foreign exchange rates list, “he added.” Rupee may see a marginal increase against the euro and yen, if the central bank continues with its decision to remove the policy. The recent announcement of European Central Bank to cut interest rates may also have an impact on the forex rates in India,” said Dhiren.