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 rupee is one of Asia's worst performers, down more than 5% against the dollar, as 50% US tariffs have hurt Indian exports while diminishing the appeal of local equities.
To curb impact of the levies, PM Narendra Modi has rolled out consumption tax cuts. Both US and India are also looking at resuming negotiations to address the trade barriers.
While the dollar's value decreased as US is an oil exporter, the yen and euro benefited as both European Union and Japan rely heavily on imports of oil and liquefied natural gas.
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.
With bad loans shrinking & capital buffers stronger, urban co-op banks’ new umbrella body NUCFDC is now prioritising rollout of digital transformation.
If deal goes through, Greece will be 2nd foreign country to procure vehicle. Morocco was first; TATA Group has set up manufacturing unit there with minimum 30 percent indigenous content.
Many of you might think I got something so wrong in National Interest pieces written this year. I might disagree! But some deserve a Mea Culpa. I’d deal with the most recent this week.
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