Forex traders track Google-Jio deal

Mumbai: Besides the US elections, foreign exchange traders and select banks in India are tracking another story: the progress on Google’s $4.5 billion deal with Jio.

Soon after the deal was announced the market priced-in the inflow and a possible appreciation of the rupee. Currency dealers sold dollar in the forward market or took position on exchanges or cut other deals.

While most in the market expect the deal to come through, traders are beginning to wonder why the Competition Commission of India (CCI) is yet to approve the transaction.

“Google has brought in half the money in tranches over the past 10 to 12 days. Banks as well as the company were expecting the CCI clearance to come in early last week.. If CCI takes a long time, some traders may change their positions depending on how the dollar-rupee reacts to the outcome of the US polls,” said a banker.