By Nimesh Vora MUMBAI (Reuters) - The difference between the USD/INR onshore and the non-deliverable forward rates has narrowed on the back of the Indian rupee's rally to its highest in seven weeks.
The reassuring part of recent stock market history is that it's rare for it to stay down for 2 yrs in a row. Though one must remember that past is no guide to future performance.
During colonial rule, the British maintained an overvalued rupee, which essentially served London’s interests but had detrimental effects on the Indian economy.
RBI's monetary policy committee may become more data-dependant in deciding on the key interest rate with inflation expected to start easing, minutes of the latest meeting suggested.
Economic consequences of multiple, random elements of disorder have been disorienting. The cycle of events could even end the Chinese super-growth story, which could benefit India.
Sources said that RBI is intervening in all foreign-exchange markets including the offshore markets and will continue to do so to protect the rupee which slid to a record low Monday.
The Russia-Ukraine crisis has led to a rush towards safe haven assets such as gold and the US dollar. Investors are selling riskier assets such as Indian equities.
Rupee is down to a record low, dragging stocks and bonds. And with few signs the commodity boom will end soon, investors are bracing for more possible losses.
India’s foreign policy today is driven less by Western alignment or global liberalism and more by domestic political imperatives — economic, ideological, and electoral.
Electronics—specifically smartphones—& energy & pharma products make up 30% of Indian exports to US. 25% tariff on India came into effect Thursday, extra 25% to kick in by August-end.
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