Most companies, barring a few, can withstand ongoing rupee fall: Report

Most domestic corporates, barring a few, can withstand the ongoing rupee plunge as the share of their dollar-linked earnings largely balance the share of their greenback-denominated debt, says a report.

The rupee fell beyond Rs 70 to the dollar, closing at an all-time low on Thursday at 70.15, while today the market was closed. So far, the rupee has lost close to 9 per cent, making it one of the worst performers among the large currencies.

"A weaker and more volatile rupee would likely result in increased hedging costs for companies, while the same may benefit exporters," an S&P report said on Friday.

"Most corporates can withstand the rupee plunge as the share of their dollar-linked earnings largely balance the share of their greenback-denominated debt. A few of them will be negatively affected, but not severe enough to impact their credit ratings," S&P said.

Bitcoin trading ban: Another company moves Delhi HC against RBI circular

A company engaged in trading in crypto-currencies has challenged an RBI circular, prohibiting banks and financial institutions from providing services in relation to such virtual currencies, in the Delhi High Court.

The plea was yesterday listed for hearing before Justice Rajiv Shakdher, who asked the high court registry to place it before the bench which is already hearing a similar matter.

The petitioner company, Flintstone Technologies Private Limited, has sought the withdrawal of the April 6 circular of the Reserve Bank of India (RBI), claiming that it is "arbitrary, unfair and unconstitutional".

The Maharashtra-based company has contended that the RBI circular has "fenced" all the entities regulated by the apex bank from providing services to any individual or business dealing in virtual currencies like crypto-currencies.

The company, which claims to provide an online crypto-currency digital wallet service for Bitcoin and Money trade coin -- both virtual currencies -- has contended that the RBI has not spelt out any reasons for imposing the restrictions.

Mexico says Trump's unsurprising Nafta threats a negotiating tactic

US President Donald Trump's threat to scrap the Nafta trade pact is little more than a negotiating tactic, aimed at his political base, that should neither scare nor surprise Mexico, the country's foreign minister said on Wednesday as the peso weakened.

In a speech in Phoenix on Tuesday night, Trump reiterated his threats to terminate the North American Free Trade Agreement, saying the pact's future looked bleak. Trump has long called the 1994 pact a bad deal that hurt American workers, saying it should be re-negotiated or ended.

Initial talks to re-negotiate Nafta between Mexico, the United States and Canada ended in Washington this weekend with no sign of a breakthrough and further discussions are due in Mexico City in September.

Following Trump's remarks on Tuesday, Mexico's peso weakened more than 1 per cent in early trading on Wednesday before paring losses, as market jitters on the future of Mexican exports to the United States continue to plague the currency.

Videgaray, speaking on local television, sought to brush off the threat, saying Trump's comments were simply a negotiating tactic and Mexico would keep negotiating as well. The comments were not a surprise, nor would they scare Mexico, he added.
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