After keeping rates unchanged in the past two policy meetings, Governor Sanjay Malhotra said there was scope for rates to come down. But the economy is proving resilient in the face of US tariffs.
The flip-flops on Trump’s tariff policy have led to a wave of dollar-selling. Stronger Asian currencies & weaker dollar will help address US’ trade imbalances with Asia.
March has been a good month for equity & currency, backed by FPI inflows & weak dollar. Going forward, tariffs, Chinese markets, oil prices & corporate earnings may have a role to play.
BRICS has been pushing for greater trade in local currencies, especially since Russia-Ukraine war began in 2022. ‘No chance BRICS will replace US dollar in international trade,’ Trump says.
The rupee has been depreciating lately due to FPI outflows, dollar strength & weak corporate performance. The slide, however, is less steep compared to other emerging markets.
India must offer the rest of the world sizable amounts of safe, readily available, and convertible assets that could be used as collateral in financial markets.
Fitch downgraded US government’s credit rating. And while markets across the world, including India, slumped in response, volatility will likely be driven by other factors.
Ahead of August's BRICS Summit in South Africa, country's High Commissioner to India, Joel Sibusiso Ndebele, also spoke about African peace initiative in Ukraine & defence cooperation with India.
While the Russia-Ukraine war saw the BJP projecting PM Modi as a ‘vishwaguru’ who could end international conflicts, the party has made a nuanced shift in its electoral strategy vis-à-vis the West Asia war.
It’s easy to understand why the government can’t speak the hard truth. When this war ends, as all wars do, India’s interests will lie with both the winner and the loser.
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