A big source of uncertainty will be trade after Trump assumes office. However, within India, rural demand is likely to sustain momentum & inflation is less likely to be a big problem.
Trump's threat to impose 100% tariff on BRICS nations won't worry Indian policymakers, given that it has consistently denied any interest in replacement of US dollar as global currency.
Investors are pricing in lower taxes and new trade tariffs under the Trump administration, measures seen as inflationary which could prompt Fed to curb easing of interest rates.
Central banks can intervene in forex market to influence exchange rate. Analysis by ThePrint shows RBI has been doing this for months, but last week saw rupee fall sharply nevertheless.
In Episode 1544 of CutTheClutter, Editor-in-Chief Shekhar Gupta looks at some top economists pointing to the pitfalls of ‘currency nationalism’ with data from 1991 to 2004.
Rupee opened at 83.78 to US dollar compared to previous close of 83.75. Selloff in US & Asian equities following disappointing jobs report spurred worries of foreign outflows from India.
Gold’s ability to hold value in times of political and economic uncertainty makes it a favoured asset in central bank reserves. It is considered a long-term hedge against inflation.
Several countries are calling for trade to be carried out in currencies besides the US dollar. But a survey of central bank currency managers shows the shift will be a slow affair.
Many offices in Telangana have asked their employees to work from home because of heavy rainfall, but it has become impossible due to the internet outages.
The Navy has always been on board with the theaterisation plan, but the Air Force feels splitting up air assets into several theatre commands is futile & will tie up critical systems.
Putin sees this as a victory. Europeans have decided to deal with Trump on his terms for the sake of the larger Western alliance. We look at the lessons for us in India.
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