The other emerging market currencies experienced a more pronounced depreciation against the dollar than the rupee in 2024, resulting in a relative appreciation effect.
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.
On 29 May 1951, Jawaharlal Nehru defended adding 'reasonable restrictions' to Article 19, arguing that free speech must be balanced with national security and unity.
On bilateral ties, Admiral Paparo said India-US ties have an exponential effect on deterrence, because it demonstrates a unity of purpose among us to maintain the peace.
This is the game every nation is now learning to play. Some are finding new allies or seeing value among nations where they’d seen marginal interest. The starkest example is India & Europe.
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