Rupees recovery against the dollar last month will not last, according to foreign exchange strategists polled by Reuters, who see the parlous state of the countrys finances undermining the currency with US monetary stimulus about to be cut back. The rupee gained 5% last month, snapping a four-month losing streak and showing biggest monthly gain since September 2012, helped largely by the Fed Reserves surprise decision to continue with its bond purchases. However, the consensus forecast from 25 strategists was that the rupee would be around 63 to the dollar by the end of October, 64 in six months and 64.25 by September next year.
Cholamandalam Ins raises R75 crore
Cholamandalam MS General Insurance has raised additional capital of R75 crore through rights issue to support its future business growth. Post-infusion from promoters, the capital base has increased to R510.9 crore now, the company said. The general insurance firm also said it aims to achieve R2,000 crore gross written premium in the current year. We have grown our business by 20% last year. This additional capital infused in our business will be utilised for our business growth and expansion, MD SS Gopalarathnam said. The company had reported a gross written premium of R906 crore in the April-September period. Chola MS General Insurance is a joint venture between Murugappa Group and Japan-based Mitsui Sumitomo Insurance Company.
Exim Bank to raise R100 cr via bonds
Exim Bank plans to raise at least R100 crore ($16.02 million) in one-year bonds at 9.47%, a source with direct knowledge of the matter told Reuters. HSBC is the sole arranger for the bond sale, said the source who did not want to be identified.