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 26 January 1966, Indira Gandhi delivered a speech that was broadcast over All India Radio. This was her first address to the nation after becoming India’s first woman prime minister.
Premier David Eby, the leader of the minerals- and gas-rich province of British Columbia, spoke with executives at Tata Steel and Reliance Industries on a trade mission to India.
New defence strategy marks clear break from Biden-era Pentagon policy, softening tone on China & Russia, while pushing allies to shoulder more responsibility with less US backing.
No nation other than China can negotiate one-on-one with Trump on an equal footing. That’s why the middle powers who so far formed the core of multilateral bodies now feel orphaned.
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