Data dive: Should RBI let the rupee fall?
1 month ago

Data dive: Should RBI let the rupee fall?

Live Mint  

The depreciation of the rupee has always been a political hot potato even though it is a natural trend for an emerging market. Several experts including the former chief economic advisor Arvind Subramanian have questioned the RBI’s intervention, while many economists have argued for a weaker rupee to boost trade competitiveness. However, the flip side is that a weaker rupee could induce inflationary pressures and a sharp fall could worsen India’s fiscal and current account deficits. “The rupee’s performance is much better than that of other currencies, but the RBI is taking the initiative of letting the rupee depreciate at a gradual pace with each passing day," said Radhika Piplani, chief economist at DAM Capital, who believes the rupee is overvalued to some extent. “If the yuan weakens significantly, the RBI does not have a lot of options but to let the rupee decline as well," said Dhiraj Nim, forex analyst at ANZ.

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History of this topic

Rupee weakens to lifetime low hurt by merchant dollar bids, weak equities
5 days, 16 hours ago

Rupee weakens to lifetime low hurt by merchant dollar bids, weak equities

Live Mint  

By Jaspreet Kalra MUMBAI, Dec 18 - The Indian rupee hit its all-time low on Wednesday, pressured by strong dollar demand from importers and likely outflows from local equities, while intervention by the Reserve Bank of India curbed losses, traders said. Weakness in regional currencies ahead of the Federal Reserve's policy decision due in U.S. trading hours also hurt the …

‘Let yuan fall’: China’s new mantra to counter Trump tariff as Xi battles to revive economy
1 week, 4 days ago

‘Let yuan fall’: China’s new mantra to counter Trump tariff as Xi battles to revive economy

Firstpost  

China is considering allowing its currency yuan to weaken in 2025 as the country braces for higher US trade tariffs as Donald Trump returns to the White House on January 20, 2025 As per analysts, the yuan may fall to 7.37 per dollar by the end of 2025, though a key factor will be how much Donald Trump raises tariffs …

Rupee slips to record low but central bank steps in to curb losses
1 week, 4 days ago

Rupee slips to record low but central bank steps in to curb losses

Live Mint  

By Jaspreet Kalra MUMBAI, Dec 12 - The Indian rupee declined to its all-time low on Thursday, pressured by dollar bids in the non-deliverable forwards market and from importers while intervention by the central bank kept a lid on losses, traders said. Heightened dollar demand in the NDF market alongside strong dollar buying by local importers, including oil companies, have …

Rupee's slide: What it means for economy, markets, and you
2 weeks, 6 days ago

Rupee's slide: What it means for economy, markets, and you

India Today  

The rupee’s recent tumble to a record low of 84.73 against the US dollar has raised concerns about its impact on the economy and people’s daily lives. Although the rupee has recovered slightly today due to gains in the Chinese yuan, the recent drop reflects a confluence of global and domestic factors, creating ripple effects that extend beyond currency markets. …

Trump risk: The rupee could get caught in the crossfire of a currency
1 month, 1 week ago

Trump risk: The rupee could get caught in the crossfire of a currency

Live Mint  

Nothing has consumed more ‘little grey cells’ than discussions on the United States presidential election, the contenders and their impact on the fate of the global economy after this “mother of all US elections." Sure enough, no Chinese policy pivot would put a floor under China’s economy, soften the US tariff impact and stabilize consumer prices faster than a weaker …

Rupee falls to an all-time low as Donald Trump win pressures Asian currencies
1 month, 1 week ago

Rupee falls to an all-time low as Donald Trump win pressures Asian currencies

Hindustan Times  

The rupee weakened to a record low on Monday, November 11, 2024 after worries regarding Donald Trump's victory in the US presidential elections pressured Asian currencies and also triggered outflows from the Indian stock market, according to a Reuters report. However, a Bloomberg report said that the RBI was ready to let the rupee weaken in tandem with the Chinese …

INR vs USD: Indian National Rupee hits record low of 84.38 against the US Dollar; Will it depreciate further?
1 month, 1 week ago

INR vs USD: Indian National Rupee hits record low of 84.38 against the US Dollar; Will it depreciate further?

Live Mint  

The Indian rupee hit a record low on Monday against the US dollar, reflecting broader weakness among Asian currencies under pressure following Donald Trump’s victory in the U.S. elections. The dollar index, which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.05% at 105.05, near the four-month peak achieved last week following Trump’s win. …

Only a weaker dollar will bring foreign investors back to India: Ruchir Sharma
1 month, 2 weeks ago

Only a weaker dollar will bring foreign investors back to India: Ruchir Sharma

India Today  

Renowned investor and author Ruchir Sharma believes foreign investment will only return to India once the US dollar weakens. "The one variable that every investor in India should look at as to when foreign flows will start coming back into India is when the dollar turns," he said. Sharma also pointed out that unless there is a significant change in …

Rupee slides, still better than other currencies: Is India, China growth threatening dollar?
1 month, 2 weeks ago

Rupee slides, still better than other currencies: Is India, China growth threatening dollar?

India Today  

The Indian rupee is down, but so are other major currencies against the US dollar. Despite its downward trajectory, however, the rupee is still well-placed against major currencies such as the Brazilian real, the Russian ruble, the Japanese yen, and the Canadian dollar. The Indian rupee has slid by 1.1 per cent against the dollar since January 1. In contrast, …

Rupee likely to remain rangebound despite drop in US dollar, yields, oil prices
1 year, 1 month ago

Rupee likely to remain rangebound despite drop in US dollar, yields, oil prices

Live Mint  

After hitting a record of 83.42 against the US dollar on November 10, the Indian rupee has stabilised and is expected to witness a rangebound movement going into the next week amid lack of fresh triggers, analysts said. “The recovery in the domestic equities backed by foreign fund inflows and lower crude oil prices are providing support to the local …

India must prepare to curb volatility risks of international rupee: RBI Deputy Governor
1 year, 9 months ago

India must prepare to curb volatility risks of international rupee: RBI Deputy Governor

The Hindu  

India needs to gear up to manage the inevitable volatility that will emerge in the foreign exchange market as the country progresses further towards internationalisation of the rupee, a Deputy Governor at the Reserve Bank of India said recently. "It is now widely accepted that while internationalisation and a freer capital account comes with its own set of benefits, it …

FM Nirmala Sitharaman Is Right: Rupee Hasn’t Weakened, Dollar Has Strengthened - News18
2 years, 1 month ago

FM Nirmala Sitharaman Is Right: Rupee Hasn’t Weakened, Dollar Has Strengthened - News18

News 18  

On 16 October 2022, Finance Minister Nirmala Sitharaman made a statement: “I look at it not as rupee sliding but dollar strengthening.” Needless to say, this statement created a political outrage, with former Finance Minister P Chidambaram sarcastically remarking: “FM said that the rupee is not weakening but the dollar is strengthening. Hence for this analysis, the performance of the …

Higher rates, weaker rupee can restore India’s trade balance
2 years, 1 month ago

Higher rates, weaker rupee can restore India’s trade balance

Live Mint  

On the one hand, India’s foreign exchange reserves remain elevated at $533 billion—a respectable 8.6 months of goods import cover—even after a fall of about $100 billion since the start of the year. India’s current account deficit likely widened to about 5% of gross domestic product in the quarter ended September on the back of elevated oil imports and slowing …

RBI ’correct’ to use forex reserves to tackle rupee volatility: Economic Adviser
2 years, 4 months ago

RBI ’correct’ to use forex reserves to tackle rupee volatility: Economic Adviser

Live Mint  

The Reserve Bank of India is justified in using the country's foreign exchange reserves to smooth out volatility in the rupee's moves against the dollar, a member of the Economic Advisory Council said on Monday. "Longer term, we need to maintain overall macro-stability and allow the cycle to play itself out," said Sanyal, who was previously India's chief economic adviser. …

'No need to be 'overtly' worried about fall in rupee,' says Economic Affairs Secretary Ajay Seth
2 years, 5 months ago

'No need to be 'overtly' worried about fall in rupee,' says Economic Affairs Secretary Ajay Seth

Firstpost  

The rupee for the first time touched a low level of 80 against the US dollar in intra-day spot trading at the interbank foreign exchange market on Monday New Delhi: Economic Affairs Secretary Ajay Seth on Tuesday said that the rupee is managed well and there is nothing to be “overtly” worried about the depreciation in the domestic currency against …

Costlier Oil Prices, Tight Financial Conditions, FPI Outflows Responsible For Rupee Fall: Sitharaman
2 years, 5 months ago

Costlier Oil Prices, Tight Financial Conditions, FPI Outflows Responsible For Rupee Fall: Sitharaman

News 18  

Finance Minister Nirmala Sitharaman on Monday said global factors, such as a surge in crude oil prices and tight financial conditions, along with foreign portfolio investment outflows, are responsible for the fall in the exchange rate of the Indian rupee against the US dollar. “Global factors such as the Russia-Ukraine conflict, soaring crude oil prices and tightening of global financial …

India’s currency could keep falling without failing us
2 years, 5 months ago

India’s currency could keep falling without failing us

Live Mint  

The Indian rupee has historically weakened against the US dollar, but bouts of volatility never fail to set alarm bells ringing. A ‘shock’ could take the form of sharp interest rate increases by systemically important central banks, such as the US Federal Reserve, geopolitical developments, oil price volatility, or a financial crisis—all of which create a risk-off scenario, leading to …

A weakening rupee and its broad implications on our economy
2 years, 5 months ago

A weakening rupee and its broad implications on our economy

Live Mint  

The Indian rupee has weakened by about 5% over the course this year so far, in response to domestic and global factors. The rupee is not alone: It could very well be said that the latest turn of events in currency markets is more of a dollar strengthening situation, as the US Federal Reserve’s rate-hiking spree has bolstered the dollar …

Data | Hitting record lows: What is driving the rupee’s fall?
2 years, 7 months ago

Data | Hitting record lows: What is driving the rupee’s fall?

The Hindu  

On Monday, the Indian rupee slumped to an all-time low of 77.36 against the U.S. dollar. India’s foreign reserves have also been dented due to the central bank’s intervention in the spot market to prop up the Indian unit. Click to remove AMP mode Intense selling The rupee’s fall has been accentuated by an exodus of foreign portfolio investors from …

India's economic challenges amid soaring crude oil price
2 years, 9 months ago

India's economic challenges amid soaring crude oil price

Business Standard  

The fallout of the Russia-Ukraine conflict might prove to be severe for India.The rupee is close to 77 a dollar. Despite the Reserve Bank’s attempts to manage this fall, the rupee has been Asia’s worst-performing currency in 2022.According to one financial daily, several brokerages, banks and treasury departments are fearing the rupee might plunge below 80 a dollar.Meanwhile, the crude …

Dealing with a weaker rupee
2 years, 9 months ago

Dealing with a weaker rupee

Hindustan Times  

The Indian rupee fell to an all-time low of 76.97 per US dollar on March 7. Countries have different levels of dependence on critical goods and sudden changes in prices of these goods can have a different impact on exchange rates. This means that when crude prices go up significantly, India’s import bill also goes up in a big way, …

Rupee’s road ahead complicated by rising inflation, covid surge
3 years, 8 months ago

Rupee’s road ahead complicated by rising inflation, covid surge

Live Mint  

MUMBAI: The Indian rupee's near-term fortunes may directly be influenced by the Reserve Bank of India's intent on preventing any further depreciation in the currency as the surge in COVID-19 cases hits jobs and growth, economists and traders said. "INR is likely to trade with a depreciating bias on the back of a stronger dollar, relatively weaker EM currencies, muted …

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