Wise to put a hold on Indian rupee payment for this month?

Coal India IPO will open on October 18th. This will be the biggest IPO ever in India (around $3 billion).

Lot of foreign inflows are expected just before the IPO.

This will lead to a temporary appreciation in the value of INR (depreciation of USD).

This effect will reverse once the application money is returned back to the foreign investors.

For now, I have put my Adsense payment on hold and intend to remove the hold in October-end.

I expect to get a much better rate in November.

What do you think guys?

 

Good forward thinking. I have planned to buy something with adsense money this month. So am not keeping it under hold.

 

Good idea..but there may be some other factors for the appreciation of INR

 

Hey,

Just remove the hold there are 100 of reasons which will move the $ rate up and down and how much is your earning even if you get 1000$... if the present rate is 45 max it will go .50 up so you will make extra 500 INR for waiting so remove the hold.

Regards
-logon2future

 

There may be some other factors for the appreciation of Indian Rupee

 

Definitely.. only Foreign fund inflows don't control $ to INR rate. the fluctuation will not be more than 30-50 paisa, you will make way more if you hold it in your bank.

 

Even a 50 paisa difference would mean a difference of more than 1%.

No bank would give me such a return in 1 month.

Capital flows is the biggest factor that influences the Indian rupee.

India has a current account deficit and yet the rupee is getting stronger. The reason is that India's capital account surplus is much bigger than India's current account deficit.

 

Hahaha, nice signature. And yes there are 12% term deposits in India

 

There is no deposit that can give 1% in a month. Bank deposit rates are around 8.5%. Unless one buys junk bonds, no fixed income instrument is giving 12% in India now.

 

Do you really think $3 Billion is going to appreciate the value of rupee, there are too many factors into it than just foreign inflows and outflows. The most important factor is the value of dollar itself in the forex market.

 

While its true that Coal India IPO would bring in high inflows... I am sure RBI would intervene if Rupee crosses 45 or 46 to a Dollar as Importers would be highly affected..

This slight appreciation in Rupee would be profitable for Big Companies who deal in Crores.. Else it would be a profit of mere few hundreds/thousands...

I would definitely not hold my funds in Online Source for this reason (as you wont know what would happen in future.. say for example the new RBI rule affecting paypal withdrawals few months back...)

 

I dont think its good idea to make it hold you should get check as normally nothing to worry about it

 

Appreciation of rupee will be from 50p to 1 rupee. So need not worry much

 

Appreciation is mostly because of fed bank (usa) low interest rate policy.

 

Actually, it worked.

I got 45.63 vs 44.35 that I would have got last month. That's 2.9% more in a month. .

 

great calculation...i like it.

 

Those calculations might not work always.
It is due to various factors.
I agree with the opinion of logon2future!

 

You might want to try it... however, be aware that Google ultimately decides when they exchange the currency from USD to your home currency, so it might be seriously lagged behind or very up to date.