For this financial year, the rupee is down about 11% against the dollar, broadly in line with other major Asian currencies such as the offshore Chinese yuan and the Korean won.
The rupee dropped to a record low of 82.6825 on Monday, but has managed to recover slightly, thanks to likely intervention by the Reserve Bank of India, which offset trading volatility.
Aggressive rate hikes will dampen demand & cause economic slowdown. In this uncertain scenario, India should avoid knee jerk policy responses & strengthen its macro-fundamentals.
The rupee rose from a 2-month low last week ahead of US election results to 74.3725 per dollar on Wednesday. Indian currency is Asia’s worst performer with a year-to-date loss of 4%.
Traders say there is a sense of anxiety among investors as they see the global as well as domestic economy plunging into a deep crisis due to COVID-19 pandemic.
While bond yields tend to fall amid low inflation & interest rate cuts, market experts say they’ve been rising due to concerns over tax collections, fiscal deficit & potential impact of US tariffs.
It is one of the most advanced long-range air defence and anti-missile radars. It has been acquired under an about USD 145-million deal signed in 2020.
In its toughest time in decades because of floods, Punjab would’ve expected PM Modi to visit. If he has the time for a Bihar tour, why not a short visit to next-door Punjab?
COMMENTS