|Chennai||Rs. 28730.00 (1.13%)|
|Mumbai||Rs. 29740.00 (-0.13%)|
|Delhi||Rs. 29200.00 (0%)|
|Kolkata||Rs. 29350.00 (0%)|
|Kerala||Rs. 28000.00 (0%)|
|Bangalore||Rs. 28400.00 (0%)|
|Hyderabad||Rs. 28470.00 (-0.11%)|
Last Wednesday's crackdown on foreign exchange remittances by Indian individuals and companies appears to have been triggered by the government's assessment that several entities in the foreign exchange market had planned large-scale transfers of the dollar through official channels, to take advantage of an arbitrage opportunity.
Officials involved with the management of forex inflows and outflows believe that an attractive arbitrage opportunity arose with the rupee having already weakened by about 13 per cent against the dollar since end-March this year and expected to drop further in the days to come. Remitting the dollar abroad now at the current rate and then bringing it back after further depreciation of the Indian currency would have given such traders a tidy profit margin through arbitrage.